Bangladesh's stock market extended losses for a third consecutive week, with the DSEX benchmark index of the Dhaka bourse falling 0.43 percent to 5,452 points, according to The Financial Express.
The decline signals a sustained downturn that matters for Bangladeshi-Americans and diaspora investors with holdings or family money in Bangladesh. Market operators said investors remained cautious amid weak corporate earnings and rising business costs, while persistent domestic economic challenges and renewed geopolitical tensions constrained prospects for a near-term recovery.
Why the three-week slide continues
Concerns over weak corporate earnings and dividend declarations, persistent domestic macroeconomic headwinds, and renewed geopolitical uncertainties continued to weigh on investor confidence, according to EBL Securities' weekly market analysis cited by The Financial Express. Of the five trading sessions this week, the first three closed lower, while the final two managed to edge higher.
The advance-decline ratio stood at 0.54, indicating that for every advancing stock, substantially more securities declined. Of the securities reported in the DSE breadth statistics, 223 declined, compared with 120 that advanced and 39 that remained unchanged, The Financial Express reported. The negative breadth was evident across several major sectors, particularly textiles, general insurance, pharmaceuticals, banks and financial institutions.
Trading volume drops sharply
Market activity weakened considerably as investor caution deepened. The market recorded a total turnover of Tk 23.53 billion, compared with Tk 27.82 billion in the previous week. Average daily turnover dropped by 15.4 percent to Tk 4.71 billion from Tk 5.56 billion in the week before, according to The Financial Express.
The textile sector dominated turnover, accounting for 24.3 percent of total trading activity, while general insurance followed with 11.4 percent and engineering accounted for 9.5 percent. Saihham Textile Mills led the turnover table with average turnover of Tk 204.84 million, or 4.35 percent of the market's reported total turnover, and a closing price of Tk 46.70, The Financial Express reported.
Other indices decline across the board
The DS30, comprising 30 leading companies, declined 9.17 points, or 0.44 percent, to 2,096.51. The DSE Shariah Index, which tracks stocks compliant with Islamic finance principles, dropped 0.83 percent to 1,078, according to The Financial Express.
Square Pharmaceuticals topped block-trade activity with turnover of Tk 275.81 million, while Saihham Textile Mills followed with Tk 201.39 million. BRAC Bank and Square Pharmaceuticals were among the leading turnover generators with average turnover of Tk 100.43 million and Tk 100.14 million respectively, The Financial Express reported.
Bargain hunters begin to return
As the prolonged correction brought major stocks to attractive price levels, bargain hunters gradually resurfaced to snap up beaten-down stocks, according to The Financial Express. Renwick Jajneswar & Co. emerged as the week's leading gainer, with its closing price rising 19.01 percent to Tk 842.70 from Tk 708.10.
The market's total capitalization remained virtually unchanged at Tk 6.84 trillion, slipping marginally from Tk 6.842 trillion to Tk 6.841 trillion. Whether the return of bargain hunters will sustain a recovery or whether macroeconomic headwinds will persist remains unclear.