Written by The Banking Post
The benchmark index of the Dhaka Stock Exchange tumbled nearly 4 per cent on Tuesday, marking its steepest single-day decline in six years, as investors rushed to offload shares amid escalating tensions in the Middle East.
The DSEX dropped 208.98 points, or 3.78 per cent, to close at 5,325, down from 5,534 in the previous session. It was the sharpest fall since March 18, 2020, when the market had slumped 4.47 per cent.
Market analysts said fears of a prolonged Iran-Israel conflict have unnerved investors, with concerns mounting over rising oil prices and higher business costs.
The intensifying hostilities — including reported US and Israeli strikes on Iran and retaliatory missile attacks — have sent shockwaves through global energy markets. With key shipping routes such as the Strait of Hormuz under threat, oil exports from one of the world’s most critical producing regions face disruption.
Economists warned that sustained conflict could trigger longer shipping routes, increased freight charges and a fresh spike in energy prices — all of which would push up production costs and stoke inflationary pressure in import-dependent economies like Bangladesh.
Blue Chips Lead the Slide
The blue-chip DS30 index, comprising 30 leading companies, fell 85.73 points to 2,050. The Shariah-based DSES index shed 36.34 points to 1,063.
Despite the sharp correction, turnover rose 13.5 per cent to Tk 8.85 billion from Tk 7.80 billion in the previous session, indicating heavy selling pressure.
Market breadth was overwhelmingly negative. Of the 391 traded issues, 349 declined, 31 advanced and 11 remained unchanged.
The sell-off underscores investor anxiety over external shocks, as geopolitical tensions threaten to compound existing economic challenges.
