Indices inches down as investors book profit 

Infographics: TBS

The indices of the Dhaka stock exchange inched down today (10 June)as cautious investors booked their profit before the upcoming budget FY2026-27.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) decreased 3 points to settle at 5,517 today. The blue-chip DS30 index dropped 0.5 points to 2,080, while the DSES Shariah Index shed 3 points to 1,114.

Market turnover stood at approximately Tk1,210 crore, 18.43% lower than the previous trading session. Of the issues traded on the DSE, 149 advanced, 178 declined and 64 remained unchanged.

Market participants said the stock market was in a consolidation phase last week after experiencing a strong rally in recent weeks. Typically, following a significant rise, investors tend to book profits, leading to a temporary correction or stabilisation in the market.

However, the appointment of a new chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC) on the last trading day of the week boosted investor sentiment. Expectations that the new leadership would strengthen market governance, enhance transparency, and restore investor confidence prompted fresh buying interest, preventing the anticipated correction and pushing the market higher.

As a result, many cautious and short-term investors opted to lock in gains toward the end of the week, particularly in stocks that had posted sharp price increases over a short period. The resulting selling pressure contributed to the downward trend observed in the market at the beginning of this week, analysts said.

Meanwhile, the government's recent initiative to introduce a Tk20,000 crore stimulus package aimed at reviving closed and financially distressed industrial enterprises has also influenced market activity.

The announcement has fuelled speculative interest in shares of several listed companies that are either non-operational or fundamentally weak. Investors are betting that some of these companies could benefit from government support and eventually resume operations, improving their future business prospects.

However, market analysts noted that there is still no clarity regarding how the stimulus fund will be distributed, which companies will qualify for assistance, what conditions will apply, or when the funds will actually be disbursed.

They cautioned that the recent surge in the share prices of closed and weak companies is largely driven by expectations rather than confirmed developments and may not be sustainable in the long run. 

Investors should therefore focus on company fundamentals, financial health, and business viability before making investment decisions, they added.

In its daily market review, EBL Securities said the capital bourse witnessed a flat session as profit-booking sentiment in recently rallied scrips offset selective buying in perceived attractive stocks, reflecting investors' cautious sentiment ahead of the upcoming national budget declaration.

According to the brokerage, the broad index opened on a brief positive note as bargain hunters remained active until mid-session; however, selling pressure emerged thereafter, wiping out the earlier gains and ultimately leading the market to close in a marginally negative territory.

On the sectoral front, the General Insurance sector dominated market turnover, accounting for 19.4% of total transactions, followed by Engineering at 12.4% and Textile at 11.7%.

Sectoral performance was mixed during the session. The Ceramic sector posted the highest gain, rising 3.5%, followed by Services with a 2.7% increase and Mutual Funds with a 2.0% gain.

On the other hand, the Miscellaneous sector suffered the sharpest decline, falling 4.2%, while Paper and Printing and Financial Institutions lost 2.0% and 1.2%, respectively.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended in negative territory. The Selective Categories Index (CSCX) fell by 44.6 points, while the All Share Price Index (CASPI) dropped by 73.5 points at the close of trading.