Dhaka Market Records Third Straight Weekly Decline as Turnover Shrinks and Caution Dominates
The DSEX fell 0.43% to 5,452 points, while average daily turnover dropped 15.4% amid earnings concerns, macroeconomic uncertainty and thin investor participation.
The Dhaka Stock Exchange finished the week ended 15 October on a negative note, extending its losing run to three consecutive weeks and reinforcing a cautious mood that has lingered for much of the past month. The broad DSEX index closed at 5,452 points, a drop of 23.52 points or 0.43 percent from the previous Friday's level of 5,475.58. The DS30, which tracks 30 large-cap stocks, slipped 0.44 percent to 2,096.51, while the DSES Shariah index fell 0.83 percent to finish near 1,078. These across-the-board declines showed that selling pressure was not confined to a single sector or a handful of names.
Trading volumes told a clearer story of fading participation. The exchange recorded total turnover of Tk 23.53 billion for the five sessions, down from Tk 27.82 billion the week before. Average daily turnover therefore contracted 15.4 percent to roughly Tk 4.71 billion. Market capitalisation stayed virtually flat at about Tk 6.84 trillion, indicating that the index retreat reflected softer prices and thinner activity rather than a sudden collapse in valuations. Of the securities that changed hands, decliners outnumbered gainers by a wide margin, with roughly 223 issues ending lower against about 120 that advanced.
The week itself was uneven. The first three sessions closed in the red as investors continued to lighten positions amid persistent worries over corporate earnings and rising business costs. The final two days produced modest recoveries, with late buying in selected pharmaceuticals, banks, and engineering stocks helping the DSEX claw back some ground. Even so, the rebound was insufficient to reverse the earlier damage. Textiles remained the busiest sector, accounting for nearly a quarter of total turnover, yet many textile counters still finished lower. Insurance, pharmaceuticals, and financial institutions also weighed on the broader indices.
Several factors continue to restrain sentiment. Investors remain uneasy about the earnings outlook for the September quarter, particularly for companies exposed to higher energy and raw-material costs. Geopolitical uncertainties have added another layer of caution, prompting some participants to reduce risk ahead of the long Durga Puja holiday. Broader macroeconomic signals have not helped: recent forecasts from multilateral institutions pointing to slower growth and elevated inflation have left many questioning how quickly listed firms can restore profit momentum. High non-performing loans in the banking system and limited private-sector credit growth further cloud the medium-term picture for financial stocks, which carry significant weight in the indices.
Today's trading session, 17 October, takes place under the special holiday-adjustment calendar that keeps banks and both stock exchanges open on Saturday. While the market is technically open, many brokers expect participation to stay light as participants prepare for the five-day closure that begins on 20 October. Limited volumes on a day like this often amplify price swings, but they rarely produce a lasting change in trend.
Looking ahead, the path of least resistance remains sideways to slightly lower until clearer evidence of earnings recovery or fresh policy support appears. Selective bargain-hunting has surfaced on individual days, especially in stocks that have already corrected sharply, yet it has not been broad enough to lift the overall market. Foreign investor activity has been mixed, and retail participation continues to dominate daily turnover. Until average daily volumes consistently exceed the Tk 5–6 billion range and the number of advancing issues regularly outpaces decliners, analysts say the three-week losing streak is unlikely to reverse quickly.
For now, the latest weekly decline simply confirms what the previous two weeks had already suggested: investors are still in a wait-and-see mode. The combination of thinner turnover, sector-wide softness, and lingering macro concerns has kept the DSEX range-bound and vulnerable to further selling. The sessions after the holiday break will offer the next real test of whether the late-week stabilisation can gain traction or whether sellers will reassert control once regular trading resumes.