The benchmark equity index ended the week in negative territory, snapping a three-week winning streak as market sentiment turned cautious amid mounting concerns over the ongoing domestic gas crisis and escalating geopolitical tensions.
Analysts pointed out that the market recovery, which had been gaining momentum over the past few weeks, encountered a setback in the first session of the week due to widespread selling pressure.
Investor sentiment was further dampened by rumors of stock category downgrades, the persistent nationwide gas shortage, and increasing geopolitical instability.
For the past week, the country has been facing a severe shortage of liquefied petroleum gas (LPG) and prices continue to soar. The supply shortage has affected essential sectors, from household stoves to CNG stations, triggering panic across the nation.
Compounding the issue were rumours circulating on the trading floor that more companies could be downgraded to the junk category, intensifying concerns about the broader market outlook.
Moreover, the escalating crisis in the Middle East added to investor unease, with geopolitical tensions further undermining confidence.
Despite the pressure, selective buying in large-cap stocks helped provide some relief mid-week.
The market saw five trading sessions this week. The first and final sessions ended lower, while the three middle sessions posted modest gains.
Finally, the market slipped into negative territory, as selective accumulation in large-cap stocks was outweighed by investors' cautious selling approach over prevailing risk aversion, ultimately capping any upside and dragging the market to a modestly lower close.
The prime DSEX index of the Dhaka Stock Exchange (DSE) settled the week 39 points or 0.79 per cent lower at 4,959. The DSEX had gained around 167 points in the past three consecutive weeks.
EBL Securities, in its weekly market analysis, said, "The market sentiment turned cautious amid concerns over the ongoing domestic gas crisis and prevailing geopolitical tensions".
The week opened on a dismal note, weighed down by broad-based selling in the first session as investors were rattled over emerging adversities, said the stockbroker.
The blue-chip DS30 index, a group of 30 prominent companies, also shed 2 points to close at 1,913 while the DSES index, which represents Shariah-based companies, dropped 15 points to 996.
Price fall of selective large-cap stocks, including Islami Bank, Walton, Al-Arafah Islami Bank, Uttara Bank and Beximco Pharma, largely contributed to the market plunge. These five stocks accounted for a 24-point fall in the DSEX.
The overall market participation remained muted as most investors largely stayed on the sidelines. The total market turnover stood at Tk 19 billion this week as against Tk 23.85 billion in the previous week.
Accordingly, the average daily turnover came down to Tk 3.8 billion from Tk 4.75 billion in the week before, registering a drop of 20 per cent.
Investors were mostly active in the pharma sector, which accounted for 15 per cent of the week's total turnover, followed by general insurance (12.5 per cent) and banking sector (12.4 per cent).
Losers outnumbered gainers -- of 386 issues traded, 268 saw prices drop while 93 others ended higher and 25 issues remained unchanged on the DSE floor.
Major sectors showed mixed performance. The non-bank financial institutions witnessed the highest correction of 2.5 per cent, followed by engineering, banking and telecom sector while pharma sector posted the highest gain of 0.90 per cent, followed by power and food sectors.
Square Pharmaceuticals became the most-traded stocks, with shares worth Tk 650 million changing hands, closely followed by Orion Infusion, City Bank, Dominage Steels and Fine Foods.
The Chittagong Stock Exchange also ended lower, with its All Shares Price Index (CASPI) losing 73 points to close at 13,921, while the Selective Categories Index (CSCX) shed 31 points to 8,622.
The port city bourse traded 5.33 million shares and mutual fund units with turnover value of Tk 328 million.
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