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The Dhaka Stock Exchange (DSE) ended Wednesday’s trading session in the red, extending its losing streak for a second straight day, as investors moved to book profits from recent rallies, particularly in the banking and blue-chip segments.

The benchmark DSEX index dropped by 14.75 points or 0.26 per cent to settle at 5,471. This followed a steeper decline of 50.23 points or 0.90 per cent in the previous session.

Bank Stocks Lead Market Retreat

Market insiders said profit-taking was most pronounced in the banking sector, which had seen a surge in recent sessions. The banking sector’s market capitalization fell by 1.73 per cent, while financial institutions declined by 1.61 per cent. The fuel & power and food & allied sectors also slipped by 0.39 per cent and 0.21 per cent, respectively.

“After any sharp rally, it’s common for investors to realise profits,” said Ali Imam, CEO of EDGE Asset Management. “Some may believe current gains are sufficient, while others may doubt further upside potential for certain stocks.”

He added that the day’s stable transaction volume indicates continued investor interest despite the index dip.

Mr. Imam noted that while some bank stocks saw unjustified rallies due to underlying operational weaknesses—including exposure to financial scandals—the rise in fundamentally sound banks was more reasonable.

Islami Bank emerged as the top index dragger, erasing 11.2 points from the DSEX. Other significant contributors to the index’s fall included BRAC Bank, City Bank, and Eastern Bank—all of which featured among the session’s top turnover leaders.

Turnover Dips Slightly

The DSE reported a daily turnover of Tk 8.89 billion, down 2.39 per cent from the previous session. The banking sector alone accounted for 23.5 per cent of the day’s total turnover, highlighting robust investor activity.

The market opened on a positive note but soon lost momentum. A brief recovery was seen mid-session, though it failed to hold, resulting in a modest overall decline by the close.

Market Sentiment Cools After Recent Gains

“The bullish momentum of the benchmark index took a breather for the second consecutive session as investors preferred realising short-term gains from the recent rallies,” said EBL Securities in its daily market commentary.

Among individual stocks, Pragati Life Insurance topped the gainers’ list with a 9.8 per cent rise, while Fareast Islami Life Insurance suffered the most, shedding 2.36 per cent.

Analysts suggest that some market correction is healthy after sustained gains, especially amid concerns over banking sector fundamentals and valuation-driven profit-taking in large-cap stocks.