Stocks opened the week nearly flat on Sunday as investors mostly remained watchful, waiting for the potential policy direction and regulatory changes under the newly elected government.
Market analysts said cautious investors preferred to realize gains from the recent election-driven rally, while opportunistic investors opted to take positions in lucrative stocks, keeping the market index flat.
Most investors may be waiting to see what kind of policy and regulatory changes the new government brings, said Md Sajedul Islam, managing director at Shyamol Equity Management.
Market momentum generally remains subdued during Ramadan due to reduced trading hours, while emerging uncertainties surrounding the US tariff regime further reinforced a cautious stance among market participants.
Institutional investors are also expecting changes in the top leadership of the Bangladesh Securities and Exchange Commission (BSEC) following the political transition, with lobbying reportedly intensifying for key posts.
Market experts insist that the right leadership is imperative for the capital market to recover from decades-old wounds inflicted by fraud and self-serving policies.
Finance Minister Amir Khosru Mahmud Chowdhury, however, hinted at comprehensive reforms in the capital market, including necessary amendments to laws and the regulatory framework to boost investor confidence.
He told journalists at his residence on Saturday that initiatives would be taken to bring fundamentally strong and profitable companies to the market to offer investors quality investment opportunities.
In his party manifesto, BNP Chairman and now Prime Minister Tarique Rahman also pledged to appoint qualified, honest, and skilled individuals to the regulatory commission.
After experiencing intraday volatility on Sunday, selective late-session buying interest in large-cap stocks provided partial support, enabling market indices to remain marginally higher.
The prime index of the Dhaka Stock Exchange settled at 5,468, gaining nearly 2 points from the previous day after losing 135 points in the past four trading days.
The blue-chip DS30 index, a group of 30 prominent companies, also rose 6 points to 2,104. However, the DSES index, which represents Shariah-based companies, saw a fractional loss of 0.30 point to 1,094.
The price gains of selective blue-chip stocks such as BRAC Bank, Olympic Industries, City Bank, Standard Bank and AB Bank largely contributed to the market gain. These five stocks accounted for a 20-point rise in the DSEX.
BRAC Bank alone added more than 15 points to the prime index as the bank's stock jumped 4.5 per cent to Tk 86.6 per share on Sunday.
However, the price falls of Square Pharma, National Bank, Islami Bank, Asiatic Laboratories and Renata eroded the market index, as they jointly accounted for a 14-point index fall.
Total turnover remained almost flat and amounted to Tk 5.68 billion, up from Tk 5.60 billion the previous day.
Investors were mostly active in the banking sector, which accounted for 18.2 per cent of the day's total turnover, followed by pharma (13.6 per cent) and food (12.7 per cent).
Large-cap sectors showed mixed performance. The banking sector experienced the highest gain of 0.9 per cent, followed by food and telecommunication, while engineering, power and pharmaceuticals suffered losses.
Losers, however, outnumbered gainers, as out of 388 issues traded, 194 closed lower, 123 ended higher and 71 issues remained unchanged on the DSE floor.
Olympic Industries became the most-traded stock, with shares worth Tk 388 million changing hands, followed by BRAC Bank, City Bank, Robi Axiata and Khan Brothers PP Woven Bag Industries.
The Chittagong Stock Exchange, however, ended lower, with its All Shares Price Index (CASPI) shedding 46 points to 15,302, while the Selective Categories Index (CSCX) lost 16 points to 9,413.
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