The Dhaka Stock Exchange made a modest yet notable gain this week as large-cap stocks led the rally, though overall investor participation remained light, according to a recent report. Following the Eid-ul-Azha holiday, the DSEX index gained 14 points on its first trading day, reaching a total of 4,724. Additionally, the DS30 blue-chip index increased by 9 points, ending at 1,771. Despite the gains, the market returned with muted activity as many investors remained cautious. Trading volumes showed a lack of confidence, with the daily total staying far below the two-billion-taka threshold observed during busier periods. Analysts noted that only a small number of stocks attracted buying, particularly those in the banking and pharma sectors, leaving many mid-sized and smaller stocks untouched. Large-cap giants such as BRAC Bank, Square Pharmaceuticals, and GP Energy led the advance. Investors appeared to be focusing on well-established companies seen as safer bets amid unclear market sentiment. This narrow participation led industry observers to interpret the movement as selective buying rather than a broad-based rally. Market breadth showed mild divergence: out of the day’s traded issues, about 55% advanced, while 45% declined. The Islamic index (DSES) remained largely unchanged, reflecting limited trading interest among Shariah-compliant offerings. Experts suggest the cautious tone stems from investor watchfulness amid an upcoming corporate earnings season. With quarterly reports due later this month, many traders are adopting a wait-and-watch approach before committing fresh funds. Elevated valuations in certain segments are also prompting selective investment behavior. Despite low participation, the shift toward larger, blue-chip stocks provides a degree of stability, analysts say. “When uncertainty prevails … large caps offer a cushion especially in thinly traded markets,” commented an equity strategist at a local brokerage firm. Looking ahead, analysts believe turnover will firm up after earnings reports begin rolling out. They expect renewed interest in undervalued mid-cap sectors like telecom, engineering, and consumer goods once corporate results clarify the outlook. In summary, the recent DSE rally driven by blue-chip stocks and cautious investor sentiment reflects a selective but stable market trend. As large-cap companies draw capital, broader participation may follow once fresh earnings data enters the scene, helping stabilize Bangladesh’s capital markets.
