Indices and Turnover Decline Amid Broad-Based Share Price Weakness

The Bangladeshi capital market began the week on a cautious and ultimately negative note, as both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) closed lower on Sunday, the first trading day of the week. Despite an initially optimistic opening, sustained selling pressure across most sectors led to a widespread fall in share prices, pulling down all major indices and reducing overall market turnover.

Trading at the DSE opened with modest gains, as the majority of shares and units recorded price increases during the early session. This early momentum briefly pushed market indices upward, giving investors hope of a potential rebound after recent volatility. However, this optimism proved short-lived. As the trading session progressed, selling pressure intensified across both fundamentally strong and weaker sectors, ultimately reversing earlier gains.

By the close of trading, a clear imbalance between gainers and losers had emerged. Out of all listed securities on the DSE, only 79 shares and units recorded price increases, while a substantial 249 experienced declines. A further 63 issues remained unchanged. This distribution highlights the dominance of bearish sentiment and reflects the lack of strong buying interest in the broader market.

Dividend-based classifications also painted a discouraging picture. Among companies known for paying dividends of 10 per cent or more, often regarded as fundamentally sound investments, only 46 saw their share prices rise. In contrast, 136 companies in this category recorded losses, while 34 remained flat. Medium-performing firms, offering dividends below 10 per cent, fared no better, with declining stocks significantly outnumbering gainers.

Even the speculative ‘Z’ category, which includes companies that have failed to declare dividends due to poor performance, saw more price declines than gains. This suggests that investors are currently reluctant to take risks, even in traditionally volatile segments of the market.

All major indices at the DSE closed lower. The benchmark DSEX index fell by 30 points to settle at 4,932. The Shariah-based DSES index declined by 6 points to 1,028, while the DS30 index, which tracks the top 30 blue-chip companies, dropped by 11 points to close at 1,891.

Market turnover also weakened alongside falling prices. Total trading value at the DSE stood at approximately Tk 457.49 crore, down by more than Tk 6 crore from the previous session. Analysts often view declining turnover during market downturns as a sign of cautious investor behaviour, with many choosing to stay on the sidelines amid uncertainty.

A significant portion of the day’s turnover was concentrated in a handful of stocks, including Orion Infusion, Lovello Ice Cream, and Munna Fabrics. Such concentration indicates limited market participation and reinforces concerns about overall liquidity.

Meanwhile, the CSE mirrored the DSE’s downward trend. Its benchmark CASPI index fell by 25 points, while turnover declined to Tk 12.40 crore. More stocks declined than advanced, underscoring the market-wide nature of the sell-off.

Overall, Sunday’s trading session reflected fragile investor confidence, limited buying enthusiasm, and persistent uncertainty. Without strong economic signals or policy support, market participants fear that volatility may continue in the near term.