Stocks closed the week marginally higher, supported by bargain hunting in beaten-down equities, even as record-high fuel price hikes and persistent Middle East tensions cast a shadow over investor sentiment.
The benchmark indices managed to eke out gains as selective accumulation of undervalued stocks by tactical investors helped cushion broader market weakness.
Analysts noted that while geopolitical uncertainties continued to cloud the near-term outlook, resilient participation signalled underlying confidence in the market's medium-term trajectory.
The positive close came despite a significant headwind: the government on Saturday announced steep increases in fuel prices, pushing them to historic highs. Diesel was raised by Tk 15 per litre, octane by Tk 20, petrol by Tk 19, and kerosene by Tk 18, a move expected to exert inflationary pressure across supply chains and household budgets.
Despite energy price hike, the opportunistic investors engaged in bargain hunting while closely monitoring developments around the Middle East tensions.
The market opened the week on a cautious note, with the first two sessions closing lower as traders digested the fuel price shock and lingering uncertainty surrounding Middle East negotiations. However, sentiment pivoted mid-week following early indications of progress in ceasefire discussions.
Of the five trading sessions, the final three closed in positive territory, underpinned by renewed interest in high-quality large caps. Selective positioning in December-closing companies ahead of expected earnings announcements also supported the recovery.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) finally rose 42 points or 0.79 per cent to close at 5,299, after remaining flat the previous week.
The DS30 index, comprising blue-chip stocks, gained 25 points to close at 2,015, while the DSES index, tracking Shariah-compliant securities, edged up 0.21 point to 1,067.
Analysts said any tangible progress in US-Iran negotiations could restore investor confidence and trigger a short-term rally.
According to EBL Securities, the market demonstrated resilience with sustained two-way participation throughout the week. Still, investors largely maintained a cautious stance amid evolving macroeconomic and geopolitical developments.
The ongoing corporate earnings season is expected to play a key role in determining near-term market direction. Strong earnings, especially from banking and pharmaceutical sectors, could attract fresh investment, said the stockbroker.
Selective gains in blue-chip stocks, including BRAC Bank, City Bank, Asiatic Laboratories, Eastern Bank and Power Grid Company of Bangladesh, largely contributed to the index rise, jointly adding more than 27 points to the benchmark index.
Market liquidity improved notably during the week. Total turnover on the DSE stood at Tk 45.16 billion, up from Tk 32.7 billion in the previous week, aided by an additional trading session.
Accordingly, average daily turnover rose 10 per cent to Tk 9.03 billion, compared to Tk 8.18 billion a week earlier.
Sector-wise, the engineering sector dominated turnover with 17 per cent share, followed by textile (13.4 per cent) and general insurance (12.2 per cent).
Market breadth remained positive, with 194 issues advancing, 168 declining and 35 remaining unchanged out of 390 traded securities. Among sectors, general insurance posted the highest gain of 5.8 per cent, followed by power, telecom, food, non-bank financial institutions and banking.
City Bank topped the turnover chart with shares worth Tk 1.6 billion changing hands, followed by Dominage Steel, Acme Pesticides, Khan Brothers and Summit Alliance Port.
The Chittagong Stock Exchange also closed the week slightly higher. Its All Shares Price Index (CASPI) rose 70 points to 14,832, while the Selective Categories Index (CSCX) gained 52 points to close at 9,093.
The port city bourse recorded a turnover of Tk 1.46 billion, with 48.4 million shares and mutual fund units traded during the week.
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