The Dhaka Stock Exchange (DSE) witnessed a sharp decline over the past week, with key indices tumbling amid investor uncertainty and weak market sentiment.
The Shariah-based DSES index fell by 27 points, while the blue-chip DS-30 index dropped by 9 points. Additionally, the SME index of the DSE declined by 8 points within the same period.
Decline in Trading Volume and Turnover
Throughout the week, the average daily turnover at the DSE stood at Tk 338 crore, a notable decline from the previous week’s Tk 412 crore. Overall, the market saw a decrease in weekly trading volume by Tk 74 crore.
The total turnover for the week reached $139 million, marking a $30 million decline compared to the preceding week.
Stock Performance Overview
Over the week, the share prices of 98 companies increased, while 26 remained unchanged. However, the majority—272 companies—experienced a significant decline.
Among major sectors, the banking sector recorded a price drop of 4.59%, while financial institutions suffered a sharper decline of nearly 18%. Insurance stocks faced a major setback, plunging approximately 35%, while mutual funds fell by over 15%.
Read: Stock markets decline throughout week, investors left disheartened
The IT sector also struggled, with stock prices tumbling by 32%. Pharmaceuticals declined by 27.74%, whereas the engineering and ceramics sectors posted losses of 40% and 45%, respectively.
Limited Positive Returns
Only four sectors managed to post positive returns during the week, while 19 sectors ended on a negative note. Among the best-performing stocks, Delta Spinners Limited, a Z-category company, recorded the highest five-day return of 39.13%.
Conversely, Prime Finance First Mutual Fund, an A-category company, suffered the steepest loss of the week, shedding 21.29% of its value. Notably, none of the A-category stocks featured in the top ten gainers list, with six belonging to the Z-category and four to the B-category.
Similarly, in the list of the week’s worst-performing stocks, no Z-category companies were present. Instead, five A-category and five B-category companies comprised the lowest-performing stocks.
Investor Trends and Market Sentiment
Brokerage houses have indicated that many investors, particularly those who have incurred losses, are shifting their focus towards riskier stocks in an attempt to recoup their investments. This trend has resulted in a decline in long-term investments in the market. Additionally, investors are increasingly turning to companies that either do not provide dividends or offer minimal payouts.
Read more: Indices rise in early trading in stock markets
As the market grapples with ongoing uncertainty, analysts suggest that stronger regulatory oversight and improved corporate governance could help restore investor confidence in the DSE.