The Bangladesh capital market witnessed a significant downturn last week (March 29 to April 2), as the benchmark index of the Dhaka Stock Exchange (DSE) shed nearly 2% of its value. Despite the slump in prices, particularly among blue-chip stocks, trading activity saw a notable surge with average daily turnover rising by nearly 22%.
Index Performance and Market Statistics
The broad index, DSEX, ended the week at 5,220 points, falling by 96.51 points or approximately 1.8% from the previous week’s 5,316 points. Other key indices also trended downward:
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DS-30 Index: Dropped by 39.35 points to settle at 1,980.
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Shariah Index (DSES): Declined by 14 points to close at 1,060.
Out of the 390 issues traded on the DSE, the prices of 172 companies advanced, 206 declined, and 12 remained unchanged. Major market movers that contributed most to the index decline included BRAC Bank, Square Pharmaceuticals, Islami Bank, Al-Arafah Islami Bank, and Pubali Bank.
Turnover and Investor Sentiment
While indices bled, market participation increased. The average daily turnover reached Tk 668 crore, a 21.90% increase from the previous week’s average of Tk 548 crore.
Market analysts attributed the bearish sentiment to:
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Geopolitical Tensions: Uncertainty surrounding the ongoing Middle East crisis.
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Domestic Energy Shortage: Fears regarding fuel scarcity and its impact on industrial production.
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Selling Pressure: Investors opted to liquidate holdings in large-cap stocks during the first three days of the week. Although some bargain hunting occurred later, a lack of strong positive catalysts prevented a sustained recovery.
Sectoral Highlights and Returns
The Pharmaceuticals and Chemicals sector dominated market activity, accounting for 16.6% of the total weekly turnover.
Sectoral Turnover Share:
In terms of returns, almost all sectors faced losses. The Travel & Leisure sector was hit hardest with a 3.9% negative return, followed by Financial Institutions (-3.6%) and Cement (-3.3%). Conversely, the IT sector emerged as the top gainer with a 3.2% positive return, while General Insurance (+1.2%) and Services & Real Estate (+1.1%) also managed to stay in the green.
Chittagong Stock Exchange (CSE) Trends
The port city’s exchange also mirrored the capital’s bearish trend. The CASPI (All Share Price Index) fell by 1.43% to close at 14,701 points.
Total weekly turnover at the CSE stood at Tk 188 crore, a massive jump from the previous week’s Tk 39 crore. Of the 307 issues traded, 127 saw price increases, 152 declined, and 28 remained unchanged.
