The prime index of the Dhaka Stock Exchange (DSE) slipped into the red on Sunday, snapping a two-session winning streak, as investors booked profits in recently appreciated stocks.
Market analysts said profit-taking pressure emerged across several sectors, particularly insurance, non-bank financial institutions (NBFIs), power and banking stocks, following their recent gains. The selling pressure outweighed selective accumulation in blue-chip shares, resulting in a modest correction in the broader market.
"The decline in the benchmark index reflects a cautious trading pattern, with investors reassessing valuations following the recent market uptrend," said Akramul Alam, head of research at Royal Capital.
The market had gained nearly 400 points over the past month, supported by budgetary incentives, tax relief measures and expectations of stronger regulatory reforms aimed at deepening the capital market.
"The sustained rally encouraged many short-term investors to realise gains," he said, adding that investors were also monitoring developments in the Middle East, where geopolitical uncertainty continued to influence sentiment.
Concerns over shipping disruptions in the Gulf region and reports of renewed tensions also prompted some investors to adopt a more cautious stance.
Iran reportedly closed the Strait of Hormuz after a fresh wave of Israeli strikes on Lebanon on Saturday, despite reports of efforts to restore a ceasefire and contain the conflict.
The developments raised concerns over global energy supplies and broader economic stability, influencing investor behaviour globally, including in Bangladesh, Mr Alam added.
However, institutional and long-term investors continued to take positions in fundamentally strong stocks, helping prevent a steeper market decline.
The DSEX, the benchmark index of the DSE, dropped 21 points, or 0.38 per cent, to settle at 5,640.
Despite the overall market decline, buying interest remained visible in select blue-chip counters. As a result, the DS30 index, which tracks blue-chip companies, bucked the broader trend and edged up by 2 points to 2,145.
Among the major laggards, Olympic Industries, UCB, Asiatic Laboratories and National Bank exerted significant downward pressure on the benchmark index.
Gains in several heavyweight stocks helped cushion the decline. Shares of Beximco Pharmaceuticals, Square Pharmaceuticals, Grameenphone, BAT Bangladesh and Renata posted notable advances, offsetting part of the losses in other sectors.
Beximco Pharmaceuticals remained one of the market's top performers, extending its month-long rally despite concerns surrounding a potential delisting from the London Stock Exchange.
The drug manufacturer's share rose 2.54 per cent on Sunday to Tk 145.30, representing a gain of approximately 15 per cent over the past month.
Market insiders said investors appeared encouraged by ongoing efforts to prevent the company's delisting, viewing the developments as a positive signal toward resolving governance-related issues that have weighed on the stock since a legal challenge was filed against the appointment of independent directors to its board.
Market turnover on the premier bourse remained above the Tk 10 billion mark, although activity moderated from the previous session. Total turnover stood at Tk 10.02 billion, compared with Tk 11.97 billion in the preceding trading session.
Losers significantly outnumbered gainers. Of the 396 issues traded on the DSE, 298 declined, 71 advanced and 27 remained unchanged.
Beximco Pharma emerged as the day's most-traded stock, with shares worth Tk 508 million changing hands. It was followed by Summit Alliance Port, IPDC Finance, Robi Axiata and NCC Bank.
The Chittagong Stock Exchange (CSE) also ended lower. Its All Share Price Index (CASPI) shed 104 points to 15,249, while the Selective Categories Index (CSCX) lost 62 points to 9,328.
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