Written by The Banking Post
The Dhaka Stock Exchange (DSE) slumped on Monday, breaking a month-long rally as investors locked in gains from rapidly rising bank stocks, triggering a broad market correction.
The benchmark DSEX index shed 50.35 points, or 0.91%, to close at 5,486, following a 13% surge over the past month that had lifted the index to a 10-month high on Sunday.
Market analysts attributed the drop primarily to profit-taking, particularly in banking stocks that had seen sharp gains. Trust Bank, which had gained 23% in a month, dropped 9% on the day, becoming the session’s top loser.
Of the 36 listed banks, 30 declined, five remained unchanged, and only Jamuna Bank posted a marginal gain. Seven banks, including SBAC Bank, UCB, NRB Bank, First Security Islami Bank, Mercantile Bank, and ONE Bank, were among the day’s top losers.
“The sell-off was expected after such a strong rally,” said Akramul Alam, Head of Research at Royal Capital. “Many traders booked profits, which is healthy for the market. Profit-taking boosts investor confidence in the long run.”
Alam noted that positive macroeconomic trends—including falling T-bill yields, rising exports, stable forex reserves, and tariff relief from the US—had fuelled recent investor optimism.
Turnover dropped to Tk 9.12 billion, down 20% from Sunday’s one-year high, but still considered robust. Bank stocks dominated turnover with a 26% share, followed by pharmaceuticals (14%) and fuel & power (9%).
The broader market also weakened, with the DS30 index losing 20.36 points to 2,130 and the DSES Shariah index down 8.15 points to 1,185.
Blue-chip stocks such as Square Pharma, Walton, BAT Bangladesh, Pubali Bank, and Beximco Pharma weighed on the index.
Out of 397 issues traded, 207 declined, 122 advanced, and 68 remained unchanged.
Jamuna Bank topped the turnover chart with trades worth Tk 316 million, followed by Bangladesh Shipping Corporation, City Bank, Orion Infusion, and Uttara Bank.
The Chittagong Stock Exchange also declined, with the CASPI shedding 68 points to 15,404 and the CSCX falling 42 points to 9,456.
