Stocks closed flat this week as investors remained cautious amid lingering uncertainty surrounding ceasefire negotiations between the US and Iran, keeping overall market sentiment subdued.
Market participants said the bourse is currently in a consolidation phase, as investors lack strong directional conviction due to mixed macroeconomic signals and geopolitical tensions.
“The market direction will largely hinge on developments in the Middle East, particularly any clarity on the US-Iran ceasefire,” said a leading stockbroker.
He added that investors have become increasingly sensitive to external shocks, especially potential disruptions in energy supply and volatility in global oil prices.
Despite the cautious sentiment, trading activity reflected a two-sided market. Opportunistic investors engaged in bargain hunting, targeting undervalued stocks, while risk-averse investors continued to offload shares — particularly large-cap stocks — keeping the benchmark index largely unchanged.
The week began on a positive note, supported by buying interest in December-closing stocks amid expectations of favourable corporate earnings. However, the momentum proved short-lived as the absence of tangible progress in ceasefire negotiations triggered renewed selling pressure.
Although later sessions witnessed intermittent recovery attempts driven by bargain hunters and optimism over possible diplomatic progress, persistent selling in major large-cap stocks capped gains.
Investors also remained watchful ahead of corporate earnings announcements for the January-March quarter, and December-closing companies.
The market operated for four sessions during the week, with a session closed on Tuesday for Pahela Baishakh. Of the four sessions, three ended higher while one closed lower.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE) inched down by nearly 1 point, or 0.02 per cent, to settle the week at 5,257. It had gained 38 points in the previous week.
The DS30 index, comprising blue-chip stocks, fell 12 points to 1,990. However, the DSES index, which tracks Shariah-compliant securities, gained 3 points to close at 1,066.
Analysts believe any concrete progress in US-Iran negotiations could help restore investor confidence and trigger a short-term rally. Conversely, further escalation may intensify risk aversion, particularly in large-cap stocks.
At the same time, the ongoing corporate earnings season is expected to play a crucial role in shaping near-term market direction. Strong earnings — especially from banking and pharmaceutical sectors — could attract fresh buying interest.
However, persistent inflationary pressure and the risk of energy price shocks due to global oil market volatility may limit upside momentum.
This week, the major index pullers were Beacon Pharma, Pioneer Insurance, Mir Akther Hossain Ltd, Dominage Steels and Paramount Textile while major index draggers were Islami Bank, Pubali Bank, LafargeHolcim, BRAC Bank and Square Pharma.
Market liquidity, however, improved this week. Total turnover on the DSE stood at Tk 32.73 billion, slightly lower than Tk 33.50 billion in the previous week, but with one fewer trading session.
As a result, average daily turnover jumped 22 per cent to Tk 8.18 billion, up from Tk 6.70 billion a week earlier.
Sector-wise, engineering dominated turnover, accounting for 17.2 per cent, followed by pharmaceuticals (11.6 per cent) and general insurance (10.3 per cent).
Market breadth remained positive, with 213 issues advancing, 142 declining, and 35 remaining unchanged out of 390 traded securities.
Major sectors showed mixed performance. Engineering, pharmaceuticals, and textile sectors posted gains, while banking, food, telecom, and power sectors ended lower.
Khan Brothers PP Woven Bag Industries topped the turnover chart with Tk 1.5 billion, followed by Acme Pesticides, City Bank, Lavello Ice-Cream, and Dominage Steel.
The Chittagong Stock Exchange (CSE) also ended the week flat. Its All Shares Price Index (CASPI) declined 12 points to 14,761, while the Selective Categories Index (CSCX) edged up 1 point to 9,040.
The port city bourse recorded a turnover of Tk 1.50 billion, with 36.1 million shares and mutual fund units changing hands.
