DSEX posts shallowest decline among regional peers in Sept amid global volatility
DSEX Has Smallest September Fall Among Regional Markets
Bdbusinessdaily.com – DSEX posts shallowest decline among regional peers in September as Bangladesh’s stock market limited its losses during a period of global volatility. The benchmark index of the Dhaka Stock Exchange fell 47 points, or 0.85% month on month, to close at 5,550.
Although the DSEX performed better than the regional indices reviewed, weaker trading activity, negative market breadth and lower market capitalisation showed that investor confidence remained fragile.
Regional indices record steeper losses
Indonesia’s IDX Composite posted the largest decline in September, falling 6.57%. India’s S&P BSE Sensex dropped 5.82%, while Malaysia’s FTSE Bursa Malaysia KLCI lost 4.33%.
Pakistan’s KSE 100 declined 3.96%, followed by Vietnam’s VN-Index at 3.47%. Sri Lanka’s ASPI and Thailand’s SET Index fell 2.46% and 2.27%, respectively. In comparison, DSEX posts shallowest decline among regional markets in percentage terms.
Turnover and market breadth weaken
Average daily turnover at the DSE dropped 25.67% from the previous month to Tk651 crore in September. The lower trading value reflected a more cautious approach from investors despite the relatively limited decline in the benchmark index.
Market breadth stood at 0.56, with 238 securities declining, 134 advancing and 17 remaining unchanged during the month. Total market capitalisation fell by around Tk7,200 crore.
The figures suggest that the stable headline performance did not extend across the full market. A relatively resilient index can sometimes mask broad selling pressure among smaller or less heavily weighted shares.
Energy and policy concerns affect sentiment
Investor sentiment was influenced by concerns over energy supplies, renewed geopolitical tension, higher fuel prices and Bangladesh Bank’s decision to keep its policy rate unchanged.
The market started September with buying interest after proposed market-development measures from the Bangladesh Securities and Exchange Commission. That momentum weakened as concerns over energy availability grew following renewed conflict in the Middle East.
The DSEX moved below the 5,529.40 to 5,563.60 support range before selected shares attracted interest around the middle of the month. Sentiment improved after the securities regulator met leading brokerage firms, Moody’s changed Bangladesh’s economic outlook from negative to stable, and domestic gas supplies improved.
The index later approached 5,600 before late-month selling returned after the fuel-price increase and the central bank’s decision not to reduce the policy rate. Investors also remained attentive to upcoming earnings and dividend declarations from companies with financial years ending in June.
Blue chips outperform the broader market
The DS30 index, which tracks 30 leading DSE-listed companies, fell only 0.23% to 2,108. This reinforced the view that larger and more established shares were steadier than the wider market during September.
Most sectors ended lower. Ceramics was the weakest, declining 4.97%, followed by engineering at 3.46% and non-bank financial institutions at 3.28%.
Insurance and mutual funds were exceptions to the broader decline. Insurance gained 4.87%, while mutual funds rose 11.79% during the month.
Frequently asked questions for Bangladesh investors
Why did the DSEX fall in September?
The decline was linked to weaker trading activity, energy-supply concerns, geopolitical tension, higher fuel prices and uncertainty around monetary policy. Despite these pressures, DSEX posts shallowest decline among regional peers for the month.
What does lower market breadth mean?
Lower market breadth means more listed securities declined than advanced. In September, 238 shares fell while 134 rose, indicating that selling pressure affected a broad part of the market.
Which DSE sectors performed best?
Insurance and mutual funds were the strongest sectors in September, gaining 4.87% and 11.79%, respectively. Most other sectors, including ceramics, engineering and non-bank financial institutions, declined.