Stocks open lower as profit-taking, geopolitical tensions weigh on sentiment

Stocks opened lower on Monday as profit-taking in recently appreciated shares continued and investors adopted a cautious stance amid fresh geopolitical tensions in the Middle East.

Market participants said concerns over potential disruptions to global shipping routes and energy supplies prompted some investors to reduce exposure following the market's recent rally.

Investor sentiment was further dampened by reports that Iran had closed the Strait of Hormuz following a fresh wave of Israeli strikes in Lebanon on Saturday, despite ongoing diplomatic efforts to restore a ceasefire and prevent a broader regional conflict.

The developments heightened fears over global energy security and economic stability, influencing market sentiment worldwide, including in Bangladesh.

The benchmark DSEX index of the Dhaka Stock Exchange fell 18 points, or 0.32 per cent, to 5,621 after the first hour of trading at 11:00 am.

Turnover on the premier bourse stood at Tk 2.36 billion at that time.

Market breadth remained negative, with 186 issues declining, 125 advancing and 73 remaining unchanged.

Among the most active counters, Beximco Pharmaceuticals topped the turnover chart, with shares worth Tk 310 million traded during the session's first hour.

The market decline followed Sunday's correction, when investors booked profits in insurance, non-bank financial institution (NBFI), power and banking stocks after several sessions of gains.

The Chittagong Stock Exchange also opened lower. Its CASPI index shed 2 points to 15,249, while the CSCX index lost 3 points to 9,326.

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