Trading activity on the Dhaka Stock Exchange (DSE) picked up last week, with turnover rising 13.88 percent, despite declines in the market’s major index and widespread losses among listed companies.

The average daily turnover increased to Tk 450.77 crore from Tk 395.20 crore in the previous week, according to the DSE’s weekly market review.

The bourse recorded total transactions worth Tk 2,250.38 crore across five trading sessions, compared to Tk 1,185.62 crore in three sessions in the preceding week.

Despite the improvement in trading activity, market participants believe the current turnover remains far below the level required for a vibrant and sustainable capital market.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said daily turnover had remained between Tk 400 crore and Tk 500 crore in recent times, which was insufficient considering the size of Bangladesh’s economy.

Speaking to BSS, he said daily transactions should reach at least Tk 1,500 crore, while Tk 1,500 crore to Tk 2,000 crore would be a reasonable target for the market.

He observed that although several government initiatives had contributed to a modest recovery in turnover, overall trading activity had yet to reach investors’ expectations.

According to him, the banking sector is gradually recovering and efforts are underway to restore discipline in the stock market, creating an opportunity for the capital market to regain momentum.

On the market front, the benchmark DSEX index lost 33.19 points, or 0.61 percent, to close at 5,417.44 points, down from 5,450.63 points in the previous week.

The blue-chip DS30 index declined 16.54 points, or 0.79 percent, to 2,086.86 points, while the Shariah-based DSES index shed 19.73 points, or 1.84 percent, to 1,050.67 points.

However, the DSE SME index, DSMEX, advanced 6.4 points, or 0.63 percent, to 970.81 points.

Market volume more than doubled, with 87.13 crore shares traded during the week against 40.73 crore shares in the previous week.

Despite higher trading volume, market breadth remained negative. A total of 250 companies saw their share prices decline, while 109 advanced and 25 remained unchanged. Trading in 27 companies’ shares remained suspended or inactive during the week.

Segment-wise, the block market recorded transactions worth Tk 179.53 crore, while the SME board registered Tk 12.88 crore in turnover. Transactions on the Alternative Trading Board (ATB) amounted to Tk 52.90 lakh, while government securities recorded Tk 30.09 crore.

To strengthen the market, the DBA president emphasised the importance of bringing bonds worth Tk 3,500 crore to the DSE’s main trading board.

He said active trading of these bonds could significantly increase overall turnover and create new investment opportunities for retail investors.

The bonds could attract individual investors through their comparatively high interest rates and the flexibility to sell them whenever necessary, he added.

Saiful Islam said discussions were underway with the stock exchange to facilitate the listing of the bonds, but some technical and procedural complications involving software modifications were delaying the process.

He explained that the DSE’s trading software, supplied by a US-based company, required modifications to accommodate the proposed bond transactions.

Expressing optimism, he said the bonds could be introduced to the main trading board within this year.

He also called for coordinated efforts by regulators, market operators and other stakeholders to accelerate the recovery of the capital market and strengthen investor confidence.