Stocks fall as earnings concerns, geopolitical tensions weigh on investors

Dhaka shares retreat as investors turn cautious over earnings and regional risks

Bdbusinessdaily.com – The Dhaka Stock Exchange began the week with a decline on 11 October, as an early rise gave way to broad selling during the latter part of trading. Investors appeared increasingly careful ahead of corporate earnings and dividend disclosures from companies with June year-ends, while concerns surrounding tensions in the Middle East added to an already cautious market mood.

The benchmark DSEX index lost 24 points and finished at 5,451. The blue-chip DS30 index also slipped, falling 2 points to close at 2,103. Activity weakened alongside prices, with turnover on the Dhaka bourse declining 6.64% from the previous session to Tk568 crore.

Market breadth showed the extent of the selling pressure. Of the 385 securities traded during the session, 264 ended lower, compared with 79 gainers. Another 42 issues saw no change in price.

Early buying fades after mid-session

Trading opened with buying interest spread across the market and that support remained visible through the middle of the session. The direction shifted later in the day, however, as investors moved to lock in profits and reduce positions. The resulting sell-off erased the initial gains and pulled the DSEX into negative territory by the closing bell.

EBL Securities described a session in which positive opening momentum could not withstand heavier selling later on. Sheltech Brokerage Limited similarly pointed to stronger pressure after mid-session, with the benchmark falling to its intraday low of 5,451 points.

The movement highlights the importance investors place on the upcoming financial results season. Earnings reports and dividend decisions can reshape expectations for individual shares, particularly when broader economic conditions are also under close watch. In such an environment, investors may be less willing to maintain riskier positions before companies reveal their latest financial performance.

Geopolitical uncertainty added another layer of concern. Regional tensions can influence sentiment in financial markets even where the immediate effects on listed companies are not yet clear. For local investors, this can encourage a defensive approach and contribute to sharp intraday changes in demand.

Textiles lead turnover while most sectors decline

Textile shares accounted for the largest portion of the day’s trading value, contributing 23.9% of total turnover. The miscellaneous sector followed with 11.1%, while general insurance represented 8.8% of the day’s transactions.

Despite strong interest in textile stocks, sector performance was mostly negative. General insurance posted the steepest loss, retreating 3.5%. Mutual funds fell 2.9%, and life insurance declined 2.2%.

A small number of sectors managed gains. Paper stocks rose 1.0%, while fuel and power added 0.8%. The miscellaneous sector advanced 0.6%, offering some support in an otherwise weak session.

The mixed sectoral picture suggests that investors remained selective rather than withdrawing evenly from every corner of the market. Liquidity continued to concentrate in a few active groups, but the overall balance of declining shares showed that selling had the stronger influence on the index.

Beximco tops trading list; mutual funds among biggest fallers

Beximco led the turnover ranking on the day. GQ Ball Pen, Evince Textile, Saiham Textile Mills Limited and Sonali Aansh Industries Limited followed on the list of the most actively traded securities.

Aziz Pipes Ltd emerged as the leading gainer, climbing 9.96%. Anlimayarn, Baraka Patenga Power, S Alam Cold Rolled and National Bank also appeared among the notable gainers.

At the other end of the market, MBL First Mutual Fund recorded the largest loss with a 10% drop. Phoenix Finance First Mutual Fund, Exim Bank First Mutual Fund, CAPM IBBL Mutual Fund and First Prime Finance Mutual Fund were also among the day’s major decliners.

The weakness in several mutual funds coincided with the broader fall in investor confidence. Mutual funds are often watched as a gauge of appetite for diversified market exposure, and their performance can reflect changes in sentiment across a wide set of listed securities.

Chittagong market follows Dhaka lower

The Chittagong Stock Exchange ended the session in line with the Dhaka market. Its selective CSCX index fell 17 points to 8,999, while the all-share CASPI index lost 25 points and settled at 14,635.

The simultaneous declines at both exchanges underscored the day’s cautious tone. With earnings and dividend announcements approaching, market participants are likely to focus closely on company-specific results, trading activity and signs of whether selling pressure eases in the coming sessions.