While small and medium-sized enterprises (SMEs) maintained a strong position in Dhaka's capital market over the past week, the banking sector faced a significant setback following its previous upward trend. During the last five trading days, the SME index of the Dhaka Stock Exchange (DSE) surged by 3.58%. The index, which began the week at 970 points, increased by 34 points to close at 1,005 points. Not only the SME sector but also DSE’s main index saw an increase of 21 points by the end of the week. Besides, the selective blue-chip index, DS30, rose by 11 points, while the Shariah-based index gained 4 points. On the other hand, despite several weeks of bullish momentum, the banking sector faced a notable decline. Share prices in the banking sector dropped by 24.37% over the past week. As share prices began to decline, investors reduced their trading activities in the banking sector, resulting in a 25.30% decrease in the sector’s overall trading volume. Out of the 36 listed banks, share prices increased for 15 banks, declined for 16 and remained unchanged for 5. Alongside the banking sector, the financial institutions sector also struggled during the past five trading days. Among the participating financial companies, share prices increased for only 3 firms, fell for 13, and remained unchanged for 7. Mixed trends in stock markets: DSE gains, CSE declines in early trading Although indices saw gains, most companies in the market experienced price declines last week. Against the rise of 176 companies, share prices of 184 companies fell, while 34 companies remained unchanged. After an initial downturn on the first trading day of the week, March 9, investor sell-offs increased during the subsequent upturns. By the last trading day, 13 March, the average daily transaction volume on the Dhaka Stock Exchange stood at Tk 390 crore, compared to Tk 362 crore in the previous week. This represents a 7.78% increase in the average daily transaction volume over the week. The most traded stocks on the DSE last week were Orion Infusion, Beach Hatchery and Lovello. Among them, Orion Infusion topped the list with a 6.12% increase in trading volume. A majority of the top price-gaining stocks were from the B and Z categories, with only three A-category companies making it to the top 10 list. At the end of the weekly trading session, B-category company S Alam Cold Rolled Steels topped the price-gain chart. On the other hand, the biggest loser of the week was A-category company Alif Industries Limited, which saw an 11.47% drop in its share price over the week. Commenting on the dominance of weaker companies in the market, Minhaz Mannan Emon, a director at the DSE, stated that the stock market has yet to return to its normal state. He pointed out that market manipulators continue to take advantage of weak companies, while some investors invest in these stocks in an attempt to recover their losses quickly. As a result, B and Z category companies often dominate the top-performing stock lists. A member of the stock market reform task force, speaking on condition of anonymity, mentioned that reform efforts have already begun, but investor confidence is yet to be fully restored. He noted that once investors regain confidence, liquidity flow in the market will improve. Market analysts believe that the stock market will regain momentum if reputable companies invest in the market and foreign companies operating in Bangladesh launch Initial Public Offerings (IPOs).