Stocks opened lower on Sunday amid choppy trading as uncertainty over proposed margin rules and renewed geopolitical tensions weighed on sentiment.

By 11:30 am, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) dropped below the 5800 threshold, losing 10 points, or 0.16 per cent, to 5,794.

Market analysts said the recent rally encouraged many short-term investors to book profits, while uncertainty surrounding the proposed changes to the margin loan rules further dampened market sentiment.

Investor sentiment was further dampened by escalating tensions in the Middle East, prompting broader risk aversion across financial markets.

Analysts said investors are closely monitoring both domestic policy developments and the evolving situation in the Middle East, which continue to influence risk appetite in the market.

Trading activity remained subdued, reflecting investors' cautious stance. During the first 90 minutes of trading, turnover on the premier bourse stood at Tk 3.22 billion.
Market breadth also remained negative, with 211 issues declining, 127 advancing, and 48 remaining unchanged by 11:30 am.

The Chittagong Stock Exchange (CSE) also witnessed a weak start to the day. Its benchmark CASPI index lost 39 points to 15,581, while the CSCX index fell 15 points to 9,521 in early trading.

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