Dhaka’s stock market recovered slightly last week as bargain hunters returned to beaten-down shares, but investors remained cautious over the outlook for corporate earnings amid persistent domestic economic pressures.
The market faced strong selling pressure at the beginning of the week as concerns over corporate performance and the lack of fresh positive triggers weighed on sentiment.
The decline pushed the benchmark index below the 5,600-point mark after nearly two months.
Mid-week, some investors stepped in to buy undervalued stocks after regulatory authorities highlighted long-term structural reforms for the capital market.
The buying interest helped the market stabilise, although the recovery remained fragile as investors stayed uncertain about the market’s direction.
The DSEX, the broad index of the Dhaka Stock Exchange, rose 0.11 per cent over the week to close at 5,662 points.
Average daily turnover increased 6.49 per cent during the week to Tk609 crore.
The recovery attempt lost momentum in the final session as investors booked quick profits, reflecting limited confidence in a sustained market rebound.
Textile stocks attracted the highest investor attention, accounting for 33.6 per cent of total turnover during the week, followed by general insurance with 12 per cent and pharmaceuticals with 11.3 per cent of the weekly total turnover in the premier bourse.
Sector performance remained mixed.
General insurance rose 2.7 per cent over the week to become the best-performing sector, while travel and jute each increased 1.4 per cent. The services sector was the weakest performer, falling 2.1 per cent during the period.
Among individual stocks, Saiham Cotton Mills was the strongest gainer, rising 15.94 per cent over the week to Tk24.00. Nahee Aluminum Composite Panel rose 11.15 per cent to Tk35.90, while Bangladesh National Insurance increased 10.54 per cent to Tk117.50.
Safko Spinning Mills rose 10.50 per cent to Tk22.10, and Nitol Insurance increased 9.58 per cent to Tk52.60. Bangladesh Thai Aluminium gained 8.97 per cent to Tk17.00.
Phoenix Finance 1st Mutual Fund rose 8.82 per cent to Tk14.80, while ICB AMCL Sonali Bank 1st Mutual Fund increased 8.62 per cent to Tk6.30.
Malek Spinning Mills advanced 8.58 per cent to Tk50.60, and Islami Commercial Insurance rose 7.65 per cent to Tk38.00.
On the losing side, Sharp Industries recorded the steepest decline, falling 20.59 per cent over the week to Tk21.60. Taufika Foods and Lovello Ice-cream dropped 15.73 per cent to Tk48.20, while Apex Spinning & Knitting Mills declined 13.56 per cent to Tk296.50.
Reliance Insurance fell 11.51 per cent to Tk12.30, while Tunghai Knitting & Dyeing declined 10.64 per cent to Tk4.20.
Meghna Pet Industries dropped 10.25 per cent to Tk71.80, Grameen One: Scheme Two fell 9.77 per cent to Tk12.00, and Meghna Condensed Milk Industries declined 9.66 per cent to Tk34.60.
Nurani Dyeing & Sweater fell 8.57 per cent to Tk3.20, while Information Services Network declined 8.44 per cent to Tk52.10.
The week’s trading reflected a market caught between selective buying and broader uncertainty, analysts said.
While lower valuations encouraged some investors to return, a sustained recovery remains dependent on stronger confidence in economic conditions, corporate earnings and investors’ appetite.
Falling yields in government bill bonds are being treated as a positive factor for the stock market, said analysts.
