DHAKA – Last week, the Dhaka Stock Exchange (DSE), the country’s main stock market, experienced a downturn with three out of five trading days (September 14-18) ending in decline. All major indices of the exchange fell by more than 1%, while the share prices of two-thirds of the listed securities dropped. The average weekly turnover also decreased by over 39%.
Indices and Market Capitalization
Market analysis shows that the DSE’s main index, DSEX, fell by 75 points, or 1.34%, to settle at 5,450 points. The previous week, the index closed at 5,524 points. The DS30 index, which comprises 30 selected companies, dropped by 44 points, or 2.04%, from 2,151 points to 2,107 points. The DSES index for Shariah-compliant companies also declined by 18 points, or 1.51%, closing the week at 1,178 points, down from 1,196 points.
Along with the fall in indices, the DSE’s market capitalization also decreased. Over the five trading days, the market capitalization dropped by BDT 145.87 crore, settling at BDT 7,24,466.72 crore on Thursday, down from BDT 7,24,612.59 crore in the previous week.
Turnover and Sectoral Performance
The average daily turnover at the DSE last week was BDT 701.07 crore, a significant drop from the previous week’s average of BDT 1,149.66 crore. This represents a decrease of BDT 448.59 crore, or 39.02%. The total turnover for the week was BDT 3,505.33 crore, compared to BDT 5,748.31 crore in the week before.
The Pharmaceuticals and Chemicals sector contributed the most to the weekly turnover, with an average daily trading volume of BDT 95.39 crore. The Banking sector was the second-highest contributor with an average daily turnover of BDT 80.14 crore, followed by the Engineering sector at BDT 79.10 crore. The Textile and Food & Allied sectors also had notable contributions, with average daily turnovers of BDT 75.25 crore and BDT 49.17 crore, respectively.
Out of 397 traded securities, the prices of 306 declined, while 68 saw an increase and 23 remained unchanged.
Sectoral Returns
An analysis of sectoral returns reveals that most sectors recorded a negative return, with only five showing a positive trend.
- The Corporate Bond sector had the highest positive return at 2.87%.
- The Service & Real Estate sector followed with a 2.62% positive return, primarily driven by a significant price increase in Summit Alliance Port despite declines in other securities within the sector.
- The Textile, Engineering, and Cement sectors also saw marginal positive returns of 0.70%, 0.61%, and 0.47%, respectively.
On the other hand, the Financial Institutions sector had the worst performance with a 6.50% negative return, as 22 out of 23 companies in the sector saw their share prices fall. The Travel & Leisure sector experienced the second-highest negative return at 5.25%, and the Life Insurance sector was third with a negative return of 4.54%.
Chittagong Stock Exchange (CSE) Performance
The Chittagong Stock Exchange (CSE) also mirrored the DSE’s downward trend. All major indices of the CSE declined, and the prices of most traded securities fell.
- The main indices, CASPI and CSCX, dropped by 1.17% and 1.14%, respectively.
- The CSI index fell by 0.84%, and the CSE-30 and CSE-50 indices also saw declines of 1.66% and 1.25%, respectively.
The total turnover on the CSE was BDT 67.06 crore, down from BDT 92.27 crore in the previous week. Out of the 312 companies and mutual funds traded, 195 saw a price decrease, 89 increased, and 28 remained unchanged.
