Stocks extended their losing streak for a second consecutive week as weak corporate earnings and persistent macroeconomic concerns weighed on investor sentiment.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) closed the week down 53 points, or 1.0 per cent, settling at 5,234. Over the past two weeks since the recent fuel price hike, the index has shed a cumulative 65 points, reflecting sustained caution among market participants.
Market analysts said cautious investor behaviour dominated trading amid ongoing tensions in the Middle East, while post-record-date price adjustments in banking stocks further dragged down indices.
Investors reshuffled their portfolios following recent earnings disclosures, but a mix of domestic uncertainties and evolving geopolitical risks kept overall market participation subdued, said a leading stockbroker.
Most investors opted to stay on the sidelines, closely monitoring developments in the absence of clear signs of de-escalation in the Middle East conflict.
"In the absence of any positive progress in ceasefire negotiations, investors largely stayed on the sidelines due to fears of escalating geopolitical tensions," the stockbroker said.
Investor sentiment was also dampened by the recent hike in fuel prices. On April 19, the government raised diesel prices by Tk 15 per litre, octane by Tk 20, petrol by Tk 19, and kerosene by Tk 18, pushing fuel costs to record highs.
The week began on a tentative note, with poor financial results from several distressed banks, persistent inflationary pressures, and energy price shocks limiting any upward momentum. As a result, the market closed lower in four out of five trading sessions.
During the week, the blue-chip DS30 index of the DSE declined 15 points to 2,002. However, the DSES index, which tracks Shariah-compliant securities, edged up 5 points to 1,058.
In its weekly analysis, EBL Securities said the market remained under pressure as investors maintained a cautious stance amid volatility during the ongoing earnings season, while developments related to Middle East ceasefire negotiations further intensified uncertainty.
Although some bargain hunting was observed in beaten-down stocks, dismal financial results from stressed banking stocks alongside post-record-date adjustments in several heavyweight issues stalled the recovery momentum, ultimately dragging the market into negative territory, said the stock brokerage.
Concerns over possible policy-level changes and the expiry of the compliance deadline for revised margin regulations also dampened investor risk appetite, the stock brokerage added.
The major index draggers were City Bank, Eastern Bank, Al-Arafah Islami Bank, Mercantile Bank and Islami Bank. They jointly eroded 55 points from the benchmark index this week.
Market liquidity remained low this week. Total turnover on the DSE stood at Tk 41.51 billion, as against Tk 47.17 billion in the previous week.
As a result, average daily turnover dropped 12 per cent to Tk 8.30 billion, down from Tk 9.43 billion a week earlier.
Sector-wise, engineering dominated the turnover list, accounting for 14.3 per cent of the total turnover, followed by banking (14.2 per cent) and pharmaceuticals (13.1 per cent).
Market breadth remained negative, with 222 issues declining, 141 advancing, and 29 remaining unchanged out of 392 traded securities on the Dhaka bourse.
Major sectors posted negative performance. Among the major sectors, banking sector suffered most, losing 2.3 per cent, followed by power, non-bank financial institutions, engineering, and food sectors.
Dominage Steel Building Systems topped the turnover chart with shares worth Tk 1.56 billion changing hands, followed by NCC Bank, Lavello Ice-Cream, Monno Ceramic and Asiatic Laboratories.
The Chittagong Stock Exchange (CSE) also ended the week lower. Its All Shares Price Index (CASPI) declined 103 points to 14,703, while the Selective Categories Index (CSCX) lost 45 points to 9,048.
The port city bourse recorded a turnover of Tk 1.08 billion, with 21.83 million shares and mutual fund units changing hands.
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