Dhaka stocks extend losses as power shortages and weak sentiment weigh on trading

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Dhaka stocks extend losses

Highlights

Dhaka Stock Exchange sees 79% of traded companies lose value as DSEX index drops 46.2 points (0.85%) to 5,404 amid persistent weak sentiment.
Sector-wise, financial institutions fall 3.6%, mutual funds drop 2.9%, and general insurance declines 2.7%, while textile stocks lead turnover at 25%.
Production disruptions from gas and electricity shortages exacerbate profitability concerns and fuel widespread risk aversion, reinforcing the market's downward trajectory.

Market decline deepens across Dhaka trading

As reported by The Business Standard, Dhaka stocks fall for another session, with nearly 79% of traded companies losing value on the Dhaka Stock Exchange as weak sentiment keeps investors on the sidelines.

According to DSE market data, 385 issues are traded yesterday. Of those, 303 decline, 47 advance and 35 remain unchanged. The benchmark DSEX index loses 46.2 points, or about 0.85%, to close at 5,404, down from 5,451 in the previous session.

Market participants say gas and electricity shortages are disrupting production and business operations, hurting corporate earnings and profitability. Lower profits could also affect dividend payouts, while rising operating costs are squeezing margins.

In its market commentary, EBL Securities says the capital market remains entrenched in a prolonged downward trajectory as concerns over weak corporate earnings, persistent domestic challenges and geopolitical uncertainty continue to erode investor confidence. The brokerage adds that market indices remain on a downward path from the beginning of the session as sector-wide sell-offs reflect widespread risk aversion and persistent selling pressure.

Sector losses and broader market impact

On the sectoral front, textile stocks account for the largest share of turnover at 25%, followed by general insurance at 10.8% and engineering at 9%. Financial institutions lead sectoral losses, declining 3.6%, followed by mutual funds, down 2.9%, and general insurance, lower by 2.7%, while jute stocks post the highest sectoral gain of 2.4%.

National Bank leads the gainers, rising 8.33%, followed by GBB Power, up 8.26%, and Prime Textile Spinning Mills, which gains 8.21%. Among the biggest losers, MBL 1st Mutual Fund falls 9.88%, Phoenix Finance 1st Mutual Fund declines 9.76%, and CAPM IBBL Islamic Mutual Fund drops 9.49%. Evince Textiles, Beximco and Sonali Aansh Industries are the most actively traded stocks by turnover.

The bearish trend also continues on the Chittagong Stock Exchange. The CASPI, the broad index of the port-city bourse, falls 84 points to 14,551, while the CSCX declines 53 points to 8,946, with turnover standing at Tk29 crore.

Bangladesh’s five-year reform and recovery plan outlined policy alignment with the World Bank and the IMF, focusing on macroeconomic stability, tighter banking discipline, higher tax revenue, and investment-led job creation. Our earlier coverage also noted steps to revive industrial activity by reopening closed factories, expanding social protection, and easing energy-cost pressures while courting regional trade and investment links. This broader reform backdrop helps explain why persistent domestic constraints can quickly feed into earnings expectations and market sentiment.

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