Stocks struggle to rebound as DSEX clings to 4,800 mark amid prolonged bearish trend

Staff Reporter :

Dhaka stocks wavered in a rare Saturday trading session as the market continued its struggle to find ground after weeks of relentless decline.

The benchmark index, DSEX, had slumped to a nearly five-year low of 4,781 on Thursday-its lowest level since 25 August 2020-concluding a fifth consecutive week in the red with a sharp 2.47% drop.

On Saturday’s special trading session was arranged as part of a government initiative to compensate for lost working days due to the upcoming extended Eid-ul-Adha holidays.

The move, which turned two Saturdays into working days, saw the Dhaka Stock Exchange (DSE) ring the opening bell on a Saturday for the first time in two decades.

Market sentiment, however, remained fragile. As trading commenced, DSEX dipped further to 4,761 by 10:46am, amplifying fears of a continued downtrend.

The persistent bearish sentiment stems from a combination of factors, including weakening investor confidence, liquidity concerns, and the erosion of portfolio value over recent weeks.

Nonetheless, signs of bargain hunting emerged shortly after the initial fall. Opportunistic investors, seeing potential value in oversold stocks, re-entered the market, driving the index back above the psychological threshold of 4,800 within half an hour.

By 1:30pm, DSEX hovered near the intraday high, signaling a tentative pause in the selling pressure.

Out of the traded scrips, 240 issues-comprising stocks, bonds, and mutual funds-advanced, while 83 declined.

This broader market participation suggests selective optimism, though analysts caution that sustained recovery remains uncertain without a clear improvement in macroeconomic indicators and investor confidence.

The market’s recent downward spiral has been exacerbated by tightening monetary conditions, a struggling banking sector, and growing uncertainty surrounding foreign exchange reserves and inflation.

Investors, especially retail participants, have seen significant capital erosion, leading many to remain on the sidelines despite apparent value in select sectors.

While today’s uptick offers a glimmer of hope, market insiders emphasize the need for policy stability, proactive regulatory measures, and improved corporate earnings to support a durable recovery.