2 weeks Ago
The stock market in Bangladesh began the new year on a positive note, with major indices showing an uptick on the first trading day of 2025. The DSEX, the broad index of the Dhaka Stock Exchange (DSE), rose by 0.03 percent to close at 5,218 points, marking a fourth consecutive day of gains for the index.
However, other indices showed a mixed performance as the DSES index, which tracks the performance of Shariah-compliant companies, fell by 0.33 percent to 1,165 points. Likewise, the DS30 index representing blue-chip stocks edged up by 0.
11 percent to 1,941 points. The situation was similar at the Chittagong Stock Exchange (CSE) as the Caspi, which reflects the value of all stocks listed with the port city bourse, increased by 0.27 percent to settle at 14,512 points.
Despite these positive movements, the DSE's daily turnover decreased by 11.57 percent from the previous session to Tk 331 crore. The banking sector played a dominant role in market activities, accounting for 18.
85 percent of the total turnover. However, Orion Infusion Limited emerged as the most traded stock with a turnover of about Tk 27 crore. Sector-wise, telecom, banking, and non-bank financial institutions (NBFIs) performed well, notching positive gains across the board.
The telecommunication sector recorded the highest gain of 1.38 percent followed by banking with 1.16 percent and NBFIs with 0.
61 percent. Meanwhile, the life insurance, jute, and general insurance sectors ended the day in negative territory. The food and allied sector logged a slight loss of 0.
03 percent while the pharmaceutical sector fell by 0.41 percent. Despite the positive start, there are significant concerns regarding the sustainability of the market's performance.
Md Saiful Islam, president of the DSE Brokers' Association (DBA), pointed out that 2024 had been a challenging year for both investors and market intermediaries. He highlighted the severe negative returns for investors, particularly during the first three months of the year, when the market was affected by floor prices and political uncertainties following a controversial national election. As a result, investor sentiment remained depressed for several months, and nearly 95 percent of the market intermediaries suffered operating losses throughout the past year.
There was a brief recovery after the political changeover in early August, however, the comeback was short-lived due to the lack of quality stocks entering the market, Islam said. The DBA president expressed concerns that the market might struggle to sustain its positive momentum in 2025, especially given the lingering effects of the recession from the previous year. Additionally, Islam voiced his concerns about the lack of engagement between key market stakeholders and the interim government.
He emphasised the importance of bringing new shares into the market, holding dialogues with stakeholders and ensuring an investor-friendly environment. Islam warned that without these steps, it would be difficult to generate long-term returns for investors. Looking ahead to 2025, market participants hope that the interim government will take necessary steps to stabilise the market by addressing the concerns of investors and intermediaries, Islam said.
Engaging in meaningful discussions with stakeholders and ensuring a steady flow of new shares will be crucial in restoring investor confidence and supporting a more sustainable recovery for the stock market, he added. The stock market in Bangladesh began the new year on a positive note, with major indices showing an uptick on the first trading day of 2025. The DSEX, the broad index of the Dhaka Stock Exchange (DSE), rose by 0.
03 percent to close at 5,218 points, marking a fourth consecutive day of gains for the index. However, other indices showed a mixed performance as the DSES index, which tracks the performance of Shariah-compliant companies, fell by 0.33 percent to 1,165 points.
Likewise, the DS30 index representing blue-chip stocks edged up by 0.11 percent to 1,941 points. The situation was similar at the Chittagong Stock Exchange (CSE) as the Caspi, which reflects the value of all stocks listed with the port city bourse, increased by 0.
27 percent to settle at 14,512 points. Despite these positive movements, the DSE's daily turnover decreased by 11.57 percent from the previous session to Tk 331 crore.
The banking sector played a dominant role in market activities, accounting for 18.85 percent of the total turnover. However, Orion Infusion Limited emerged as the most traded stock with a turnover of about Tk 27 crore.
Sector-wise, telecom, banking, and non-bank financial institutions (NBFIs) performed well, notching positive gains across the board. The telecommunication sector recorded the highest gain of 1.38 percent followed by banking with 1.
16 percent and NBFIs with 0.61 percent. Meanwhile, the life insurance, jute, and general insurance sectors ended the day in negative territory.
The food and allied sector logged a slight loss of 0.03 percent while the pharmaceutical sector fell by 0.41 percent.
Despite the positive start, there are significant concerns regarding the sustainability of the market's performance. Md Saiful Islam, president of the DSE Brokers' Association (DBA), pointed out that 2024 had been a challenging year for both investors and market intermediaries. He highlighted the severe negative returns for investors, particularly during the first three months of the year, when the market was affected by floor prices and political uncertainties following a controversial national election.
As a result, investor sentiment remained depressed for several months, and nearly 95 percent of the market intermediaries suffered operating losses throughout the past year. There was a brief recovery after the political changeover in early August, however, the comeback was short-lived due to the lack of quality stocks entering the market, Islam said. The DBA president expressed concerns that the market might struggle to sustain its positive momentum in 2025, especially given the lingering effects of the recession from the previous year.
Additionally, Islam voiced his concerns about the lack of engagement between key market stakeholders and the interim government. He emphasised the importance of bringing new shares into the market, holding dialogues with stakeholders and ensuring an investor-friendly environment. Islam warned that without these steps, it would be difficult to generate long-term returns for investors.
Looking ahead to 2025, market participants hope that the interim government will take necessary steps to stabilise the market by addressing the concerns of investors and intermediaries, Islam said. Engaging in meaningful discussions with stakeholders and ensuring a steady flow of new shares will be crucial in restoring investor confidence and supporting a more sustainable recovery for the stock market, he added..
