Post-Holiday Caution Deepens as DSEX Slips Further on Second Trading Day
The DSEX fell further on Monday as cautious investors weighed corporate earnings, dividend declarations and higher global energy prices.
Dhaka — Bangladesh's equity market has extended its soft start to the week, with the Dhaka Stock Exchange's benchmark index remaining under pressure on Monday after a subdued reopening following the Durga Puja holidays. Investor sentiment continues to reflect a wait-and-see approach rather than any broad-based recovery.
On Sunday, the first session after the five-day break, the DSEX finished at 5,433 points, a decline of 18.1 points or roughly 0.3 percent from its previous close near 5,451. Trading activity stayed modest, with turnover falling to about Tk 4.31 billion—down around 14 percent from the session before the holiday. Of the nearly 400 issues that changed hands, decliners outnumbered advancers by a wide margin, underscoring the lack of conviction among participants. Market capitalisation also edged lower as losses in most stocks outweighed selective gains.
By mid-afternoon on Monday, the index had slipped further. Live readings from the exchange showed the DSEX hovering near 5,395 points, off approximately 38 points or 0.7 percent from Sunday's close. The blue-chip DS30 and the Shariah-compliant DSES indices tracked the broader weakness, each losing more than half a percent in the later part of the session. Turnover had built to roughly Tk 2.7–3.1 billion by early afternoon, with volume exceeding 100 million shares, yet the advance-decline ratio stayed negative as more stocks lost ground than gained.
The tone has been consistent across both sessions. Concerns over the ongoing corporate earnings and dividend declaration period remain a central factor, as many investors prefer to see clearer results before adding exposure. At the same time, elevated global energy prices tied to renewed tensions in West Asia have added an external layer of caution, raising questions about cost pressures for energy-intensive businesses and the wider economic outlook. Without fresh positive domestic catalysts, early buying interest has repeatedly given way to selling.
Sector performance has been uneven. Banking shares, which showed relative resilience on Sunday by posting modest gains and accounting for a large portion of turnover, came under pressure on Monday and were trading lower. Most other sectors, including textiles, pharmaceuticals, insurance, and fuel and power, have also faced headwinds. Isolated pockets of strength have appeared in mutual funds and a few individual stocks, but these have not been sufficient to reverse the overall direction.
The Chittagong Stock Exchange mirrored the cautious mood earlier in the week, with its main indices also finishing lower on Sunday amid reduced activity. Local market participants note that the recent pattern of soft trading predates the holiday, and the post-break sessions have so far failed to spark renewed participation.
With the continuous trading session scheduled to end at 2:00 p.m., the final close could still shift modestly. Nonetheless, the prevailing picture is one of continued restraint. Analysts and brokers observe that clearer signals from corporate disclosures, along with any improvement in the broader macroeconomic environment, will likely be needed before investors commit larger volumes. Until then, the market appears set to remain range-bound and sensitive to both domestic results and external developments.