Written by The Banking Post
Stocks closed the week slightly higher, as cautious optimism over a US–Iran ceasefire was offset by lingering geopolitical uncertainty.
The benchmark index of the Dhaka Stock Exchange (DSEX) rose 38 points, or 0.73 per cent, to settle at 5,258, recovering part of the previous week’s losses.
Market sentiment remained highly sensitive to developments in the Middle East. The week opened on a negative note, with investors reacting to government austerity measures aimed at managing a potential energy crisis.
However, sentiment improved in subsequent sessions as bargain hunters stepped in, encouraged by steady fuel prices and growing optimism over a ceasefire. This triggered a three-day recovery, including a sharp 161-point surge midweek.
The rally proved short-lived. Fresh concerns over the durability of the ceasefire and fears of disruption in the Strait of Hormuz weighed on confidence. The index dropped 60 points the following day after renewed regional tensions, highlighting the fragility of the recovery.
“Investors are currently more sensitive to external shocks, particularly energy supply risks and oil price volatility,” said a market analyst, adding that many are now taking a wait-and-see stance.
Despite the choppy trading, three out of five sessions ended in the green. Blue-chip banking stocks, including BRAC Bank, Pubali Bank, Prime Bank and City Bank, played a key role in lifting the index.
Other indices also posted gains, with the DS30 rising 22 points to 2,002 and the Shariah-based DSES index adding 4 points to 1,063.
Market turnover remained largely unchanged at Tk 33.48 billion for the week, with average daily turnover steady at Tk 6.69 billion.
Sector-wise, pharmaceuticals led trading activity, followed by engineering and banking. However, market breadth remained weak, as decliners outnumbered gainers.
The Chittagong Stock Exchange also ended higher, with its key indices posting modest gains.
Analysts said the market’s near-term direction will depend heavily on geopolitical developments. A sustained ceasefire could support gradual recovery, while renewed tensions may keep volatility elevated.
