Staff Correspondent: After weeks of persistent decline, Bangladesh's stock market appears to be showing signs of recovery. For the past three weeks, the country's key indices have suffered sharp losses, plunging investor confidence and stirring deep anxiety in the market.
An analysis of recent data reveals that the benchmark index of the Dhaka Stock Exchange (DSE) fell from 5,206 points on 6 April to 4,917 points by 30 April-shedding a total of 289 points over the course of 14 trading sessions, 12 of which ended in the red.
During the same period, DSE's market capitalisation dropped significantly. On 6 April, it stood at Tk 671,643 crore, but had fallen to Tk 656,059 crore by 30 April-marking a loss of Tk 20,085 crore in just over three weeks.
However, the beginning of this trading week brought a much-needed breather. On Saturday, the market opened on a positive note. Though the DSE index briefly slipped into negative territory before 1:00 PM, the tide began to turn after institutional investors, including ICB, entered the fray. As a result, the DSE's benchmark index closed 38.33 points higher at 4,917.
Market insiders believe this turnaround could mark the start of a stabilising trend. "The market has absorbed a great deal of shock, but this may be the beginning of a rebound," said one analyst. "If major investors and institutions continue to show confidence, recovery could come faster than expected."
On Saturday, the DSE Shariah Index rose by 6.20 points to 1,100, while the DS30 index dipped by 11.13 points to settle at 1,834. Trading activity also showed signs of improvement, with total turnover reaching Tk 399.33 crore-up from Tk 326.63 crore on the previous trading day.
Out of 395 companies traded on the DSE, share prices rose for 290, declined for 67, and remained unchanged for 38.
Over at the Chattogram Stock Exchange (CSE), the overall CASPI index dipped slightly by 0.07 points to 13,805. Turnover was considerably lower at Tk 6.39 crore, compared to Tk 41.58 crore on the previous day. Of the 204 companies traded, 120 advanced, 61 declined, and 23 remained unchanged.
While it's too early to declare a full recovery, market watchers are cautiously optimistic that the worst may be over-at least for now.