Trading activity on the Dhaka Stock Exchange (DSE) declined sharply on Wednesday, hitting a near seven-month low amid cautious investor behavior despite modest gains in key indices. The daily turnover stood at Tk146 crore, reflecting ongoing liquidity challenges amid economic uncertainties and concerns over corporate earnings.

The benchmark DSEX index rose 0.38%, gaining 20 points to close at 5,429, while the blue-chip D530 index inched up 0.15% to 2,092 points. Market breadth was positive, with 197 stocks advancing, 137 declining, and 51 remaining unchanged.

Market analysts pointed to selective bargain hunting in stocks that had been heavily sold in previous sessions as a factor supporting the modest recovery. However, overall investor confidence remained cautious, weighed down by domestic economic pressures, expectations of weak corporate performance, and global geopolitical tensions.

The trading session was marked by volatility, with a dynamic interplay between opportunistic buyers and profit-taking sellers. The market opened on a firm footing, led by gains in select large-cap and insurance shares, driving the DSEX to an intraday peak of 5,439 points before settling lower.

Sector-wise, textile shares accounted for the largest share of trading volume at 24%, followed by general insurance at 13.4%, and pharmaceuticals at 8.8%. General insurance stocks led sectoral increases with a 2% rise, supported by advances in life insurance (1%) and engineering (0.9%). Conversely, jute stocks experienced the sharpest decline with a 4% drop, while service and financial institution sectors slid 1% and 0.9%, respectively.

Evince Textile emerged as the most traded stock by value, followed by Sonali Aansh, Prime Finance First Mutual Fund, Paramount Textile, and Apex Spinning. Among gainers, Usmania Glass led with a 9.82% increase, closely followed by Prime Finance First Mutual Fund at 9.81%, Techno Drugs at 9.58%, BIFC at 9.09%, and Rahima Food at 8.12%.

Market participants are expected to continue monitoring economic developments and earnings reports closely as liquidity constraints and geopolitical uncertainties continue to influence investor sentiment.