Dhaka’s stock market ended lower on Sunday as falling prices of large-cap securities weighed on the benchmark index, despite a modest increase in overall turnover.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 6.9 points to close at 5,526, compared with 5,533 in the previous trading session. The decline came mainly from weakness in large-cap shares, which can have a significant influence on the movement of the broader market index.
Trading activity, however, remained relatively firm. Turnover on the DSE increased by 2.6 per cent to Tk 740 crore, compared with Tk 720 crore in the previous session, according to a report by Bangladesh Sangbad Sangstha (BSS).
The rise in turnover alongside a fall in the benchmark index shows that trading remained active even though the overall direction of share prices was negative. Market turnover measures the value of transactions, while an index reflects movements in the prices of its constituent securities, meaning the two can move in opposite directions during a trading session.
The textile sector accounted for the largest share of the day’s turnover, contributing 27.2 per cent of total transactions. General insurance followed with 22.8 per cent, while pharmaceutical stocks accounted for 10.1 per cent.
The strong presence of these three sectors in turnover indicates that they attracted a substantial portion of investors’ trading activity during the session. However, active trading in individual sectors was not enough to prevent the broader market index from falling.
Market breadth also reflected a weaker trading environment. Of the 395 issues traded on the DSE, 123 advanced, while 215 declined. Another 57 issues remained unchanged.
The number of declining securities was therefore considerably higher than the number of gainers. This suggests that the downward movement was not confined to a small number of companies, although the fall in large-cap securities played a particularly important role in pulling the benchmark index lower.
The session also highlighted a contrast between trading volume and market direction. Investors continued to exchange shares worth hundreds of crores of taka, but the higher level of transactions did not translate into an increase in the main index. The performance of large-cap securities remained a key factor in determining the final direction of the DSE.
The Chittagong Stock Exchange (CSE) recorded a mixed performance. Its selected index, CSCX, edged up by 0.3 points, while the All Share Price Index (CASPI) declined by 5.6 points.
Overall, Sunday’s session ended with higher turnover but weaker market indices. Textile, general insurance and pharmaceutical stocks accounted for significant portions of trading, while the broader market remained under pressure as more securities declined than advanced and large-cap shares weighed on the DSE’s benchmark index.
