After weeks of sluggish performance, the banking sector spearheaded a recovery in the country’s capital markets last week. Driven by positive returns from bank stocks, the benchmark index of the Dhaka Stock Exchange (DSE) posted a gain, while trading volume also saw a slight uptick.
DSE Indices End on a High Note
The DSE Broad Index (DSEX) ended the week at 5,258 points, gaining 38 points or 0.7% from the previous week’s 5,220 points. Other key indices followed suit:
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DS-30 Index: Rose by 22 points to settle at 2,002.
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Shariah Index (DSES): Increased by 4 points to close at 1,063.
Market analysis shows that out of 387 issues traded on the DSE, 138 advanced, 220 declined, and 29 remained unchanged. Despite more stocks declining than advancing, the index was pushed upward by heavyweights including BRAC Bank, Pubali Bank, Prime Bank, City Bank, and Taufika Foods and Lovello Ice-cream.
The average daily turnover on the DSE stood at BDT 669 crore, a marginal increase of 0.20% compared to the previous week.
Volatility and Global Influence
The week began with investor jitters due to Middle East tensions and domestic energy shortages, leading to significant sell-offs. However, news of a potential ceasefire on the fourth trading day sparked a major rally. Although uncertainty regarding the ceasefire’s permanence led to profit-taking on the final day, the banking sector’s dividend announcements acted as a safety net, preventing a market crash.
Sector-Wise Performance
The Pharmaceuticals and Chemicals sector dominated market activity, accounting for 15.8% of the total turnover. Other top-performing sectors included:
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Engineering: 14.2%
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Banking: 9.3%
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Textiles: 9.0%
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General Insurance: 8.8%
In terms of returns, the Tannery sector led the pack with a 2.4% positive return, followed by Banking and Paper & Printing at 1.7%. Conversely, Mutual Funds suffered the most with a 2.9% negative return, followed by Life Insurance (-2.8%) and Travel & Leisure (-1.8%).
Chittagong Stock Exchange (CSE) Trends
The port city’s exchange also mirrored the positive sentiment. The CASPI index rose by 0.49% to reach 14,774 points, while the CSCX index climbed 0.63% to 9,039 points.
Total turnover on the CSE surged significantly to BDT 243 crore, up from BDT 188 crore the previous week. Out of the 297 issues traded, 123 saw price increases, 144 declined, and 30 remained unchanged.
Market analysts remain cautiously optimistic, noting that while the banking sector provides a solid foundation, overall stability will depend on macroeconomic factors and geopolitical developments.
