Investor participation wanes, causing a 20% decrease in DSE turnover
The Dhaka Stock Exchange (DSE) witnessed a fifth consecutive session of losses, with the benchmark DSEX index slipping 6.98 points, or 0.13%, to close at 5,344. This decline was attributed to selling pressure, reduced investor activity, and overall negative market sentiment.
On Tuesday, the blue-chip index DS30 edged up slightly by 0.38 points to settle at 2,067. However, this gain was overshadowed by the losses in other sectors. Non-bank financial institutions, travel, and fuel and power showed the most gains on the bourse, while services, life insurance, and jute exerted the most corrections. Regent Textile suffered the steepest decline.
The selling pressure intensified, neutralizing the momentum, and concluding the session broadly unchanged. Gains in BRAC Bank, Islami Bank, Titas Gas, Sea Pearl Beach Resort, and Beximco Pharmaceuticals helped limit the index's losses.
The market exhibited a brief bullish impulse due to bargain-hunting in selective blue-chip scrips. However, early optimism quickly faded as profit-taking pressures emerged. The Shariah-based DSES fell marginally.
The average daily turnover decreased significantly, from Tk 911.37 crore a week earlier to Tk 689.18 crore recently, marking about a 24% decline in average daily turnover, indicating reduced investor activity.
Stocks of certain sectors like pharmaceuticals and chemicals dominated trading but still showed broad negative returns, with market breadth negative as 274 scrips declined versus 99 advancing. The DSE turnover dropped by 20% to Tk611 crore today.
The SME segment suffered a sharp correction over the year leading up to August 2025, with SME stocks losing 3-76% in price and the SME index plunging 27%, further depressing market sentiment and turnover. On individual days within the week, despite occasional rebounds, the prevailing trend was bearish, prompted by profit-taking and concerns over stock valuations without strong fundamentals, especially in speculative SME stocks.
The persistent downtrend, coupled with profit-taking pressure and cautious sentiment ahead of upcoming corporate earnings disclosures, contributed to the day's performance. As a result, the DSE extended its losing streak to a fifth consecutive session. The market capitalisation declined by Tk5,500 crore during the day.
Bangladesh Shipping Corporation led the trading activity with shares worth Tk20.87 crore changing hands. Major blue-chip stocks that dragged the market down included Square Pharmaceuticals, Pubali Bank, BAT Bangladesh, LafargeHolcim Bangladesh, and Exim Bank.
Mithun Knitting topped the gainers' list, hitting the day's 10% upper circuit breaker, due to increased investor interest following a new application by Chinese firm Destination Express International (DEX-I) Limited to acquire the sponsor shares of the company.
Pharmaceutical stocks accounted for the highest turnover at 15.1%. Orion Infusion, Malek Spinning, and Sea Pearl Beach Resort were among the top traded stocks.
[1] Selling pressure intensified, neutralizing the momentum, and concluding the session broadly unchanged, according to EBL Securities. [2] The average daily turnover decreased significantly, from Tk 911.37 crore a week earlier to Tk 689.18 crore recently, marking about a 24% decline in average daily turnover, indicating reduced investor activity. [3] Stocks of certain sectors like pharmaceuticals and chemicals dominated trading but still showed broad negative returns, with market breadth negative as 274 scrips declined versus 99 advancing. [4] The DSEX benchmark index fell by 57.82 points (1.07%) over the week, with the blue-chip DS30 index and the Shariah-compliant DSES also declining. [5] On individual days within the week, despite occasional rebounds, the prevailing trend was bearish, prompted by profit-taking and concerns over stock valuations without strong fundamentals, especially in speculative SME stocks.
- The selling pressure, as reported by EBL Securities, intensified during the session, neutralizing any potential momentum and resulting in the market concluding broadly unchanged.
- The average daily turnover decreased significantly over the past week, from Tk 911.37 crore to Tk 689.18 crore, indicating a 24% decline in investor activity.
