The first trading day of the week brought renewed pressure to Bangladesh’s equity markets, as widespread sectoral declines overshadowed early gains and pushed both the Dhaka and Chittagong stock exchanges into negative territory. Although the session began with positive momentum, the market struggled to sustain buying interest, resulting in declining indices and reduced trading activity.
From the outset, several sectors showed tentative signs of recovery, encouraging short-term traders to enter the market. However, this optimism faded quickly as selling pressure emerged across banking, pharmaceuticals, engineering, textiles, and food sectors. The broad-based nature of the decline indicates that the downturn was not confined to a single industry but reflected a systemic lack of confidence.
At the Dhaka Stock Exchange, market breadth weakened considerably by the end of the session. Nearly three times as many stocks declined as advanced, a clear indication of bearish dominance. Such weak breadth often signals that investors are prioritising capital preservation over risk-taking, particularly in uncertain market conditions.
The performance of high-dividend-paying companies was particularly concerning. These firms are typically viewed as defensive investments during periods of volatility, yet they too experienced significant price erosion. This trend suggests that even long-term investors are adopting a cautious stance, possibly due to macroeconomic concerns and limited near-term catalysts.
Mid-tier dividend-paying companies and Z-category stocks also struggled, reinforcing the perception that market sentiment remains fragile across all tiers. While a small number of shares posted gains, these were insufficient to counterbalance the widespread declines.
Index movements reflected the market’s overall weakness. The DSEX, DSES, and DS30 indices all closed lower, highlighting losses not only in smaller stocks but also among leading blue-chip companies. Declines in the DS30 index are particularly notable, as they often signal reduced institutional participation.
Turnover figures further underscored the cautious mood. The fall in trading value suggests that many investors opted to remain inactive rather than engage in uncertain market conditions. When declining prices are accompanied by falling turnover, it often indicates a lack of conviction among both buyers and sellers.
Trading activity remained heavily concentrated in a limited number of stocks. Orion Infusion led turnover, followed by Lovello Ice Cream and Munna Fabrics. While these stocks attracted attention, the narrow focus of trading highlights the absence of broad-based participation, a key component of a healthy market.
At the Chittagong Stock Exchange, similar patterns emerged. The CASPI index declined, turnover fell, and more stocks ended the day lower than higher. This parallel movement across both exchanges suggests that the downturn was market-wide rather than exchange-specific.
Market analysts argue that sustained recovery will require improvements in liquidity, stronger corporate earnings, and clear policy direction. Until these factors align, the market may continue to experience volatility and subdued trading volumes.