Market Correction Follows Surge as Investors Realise Profits

The Bangladesh capital market experienced a measured price correction on Monday, 17 February 2026, as investors moved to capitalise on the substantial gains recorded during the previous session. Following a historic post-election rally on Sunday, the benchmark index faced downward pressure from a heightened selling appetite, a trend market analysts describe as a “natural and healthy” adjustment.

Trading Dynamics and Index Performance

The DSE Broad Index (DSE leadership), the primary gauge of the Dhaka Stock Exchange, shed 11 points to close at 5,590. This modest retreat follows Sunday’s extraordinary leap of 201 points—a nearly 4% surge triggered by the formation of the new administration.

While the index cooled, market liquidity remained robust. Turnover on the DSE stood at 1,257 crore BDT, slightly lower than the previous day’s 1,275 crore BDT. In contrast, the Chittagong Stock Exchange (CSE) saw its overall index inch up by 7 points, though its trading volume dwindled to 14 crore BDT, down significantly from 25 crore BDT on Sunday.

Market Breadth and Sectoral Impact

The day was defined by “profit-taking” across high-cap and blue-chip stocks. Of the 397 companies traded on the DSE, the majority saw their share prices decline as investors rebalanced their portfolios.

LankaBangla Securities reported that the index was primarily dragged down by heavyweights such as Grameenphone, BRAC Bank, and British American Tobacco (BATBC). Collectively, the top ten declining stocks shaved off more than 19 points from the DSE X. Conversely, gains in Square Pharma, National Bank, and Labaid Cancer Hospital (among others) provided a 21-point cushion, preventing a more severe slump.

Political undertones and Stock Sentiment

In a fascinating trend post-election, stocks associated with political figures showed significant volatility. While Sunday favoured companies linked to the BNP, Monday saw a broadening of interest. National Bank, associated with Abdul Awal Mintoo, hit the upper circuit breaker with a 10% gain, while Dhaka Bank remained a volume leader with 41 crore BDT in trades.

Interestingly, interest also returned to institutions historically linked with Jamaat-e-Islami leaders. Ibn Sina Pharma rose by 2%, showing a shift in investor sentiment as the market moves away from purely political speculation toward fundamental valuation.

Expert Outlook

Shakil Rizvi, a Director at the DSE, suggested that the current volatility is a sign of life returning to the bourse. “Investors are shifting capital from one sector to another to lock in profits. This is standard market behaviour,” he noted. He observed that both new and previously inactive institutional investors are beginning to enter the fray, which bodes well for the market’s long-term stability.