Stocks at the Dhaka bourse ended flat last week amid the US-Iran ceasefire, rebounding from the previous week's losing streak.
During the week of 5-9 April, the benchmark index of the Dhaka Stock Exchange (DSE), DSEX, ended in the green, gaining 37 points and recovering from a 96-point loss in the previous week, according to data.
Turnover stood at Tk3,348 crore, while the daily average turnover increased by 0.20% to Tk669.6 crore. However, the prices of the majority of stocks declined amid sell-offs.
According to DSE weekly data, three of the five trading sessions ended positively, including a strong rebound in one session, with DSEX surging by 205 points in these sessions. Meanwhile, two sessions closed in the negative, weighing on the index by 168 points.
On 8 April, breaking a prolonged bearish spell since the onset of the war, Dhaka stocks rallied strongly, with turnover and indices surging after the US and Iran agreed to a conditional two-week ceasefire. DSEX rose by 3.12%, or 161 points, marking its highest single-day gain since 15 February.
As per the data, at the end of last week, DSEX closed at 5,257 points, while DS30, the blue-chip index, surged by 22 points to 2,002, and DSES, the shariah index, and increased by 3.6 points to 1,059.
Of the traded stocks, 138 advanced, 220 declined, 29 remained unchanged, and 24 were not traded.
EBL Securities, in its weekly market commentary, said the capital market exhibited mixed performance over the week as escalating tensions in the Middle East prompted investors to adopt a risk-averse stance and closely monitor unfolding developments.
"The week opened with broad-based sell-offs, fueled by panic reactions to newly announced government austerity measures aimed at addressing the country's potential energy crisis. As the week progressed, sentiment gradually improved.
"Bargain hunters moved in to accumulate oversold large-cap stocks following the government's decision to keep fuel prices unchanged and amid growing optimism over a potential US-Iran ceasefire. This shift in mood supported three consecutive sessions of market recovery," it said.
However, the optimism proved short-lived. Renewed uncertainties surrounding a lasting resolution to the conflict, along with concerns over a possible blockade of the Strait of Hormuz, weighed on investor confidence once again.
It said investors were mostly active in pharma sector stocks, which contributed 15.8% to total turnover, followed by engineering with 14.2% and bank sector stocks with 9.3%.
Sectors exhibited mixed returns, with tannery at 2.4%, bank at 1.7%, and paper at 1.7% being the top gainers, while mutual fund, life insurance, and travel sector stocks emerged as the top losers