Written by The Banking Post
Dhaka, July 2 — The Dhaka Stock Exchange (DSE) saw its recovery efforts falter in the first half of 2025, with average daily turnover dropping to Tk 383.9 crore from Tk 632 crore a year earlier, according to BRAC EPL Stock Brokerage’s H1 performance review.
BRAC EPL attributes the downturn to looming U.S. tariffs on Bangladeshi exports, escalating regional tensions (notably India–Pakistan and Iran–Israel), and investor nerves over the national election timeline. Despite some macro-stabilisation—easing inflation, relaxed regulations and a steadier FX regime—high interest rates and rising non-performing loans weighed heavily on sentiment.
The benchmark DSEX index slid 7.2 percent year-on-year in H1, while market capitalisation contracted by 8.1 percent. Corporate earnings for Q1 fell short of projections, reinforcing a cautious mood among market participants.
Within banking, sector returns fell 8.4 percent YTD. BRAC Bank bucked the trend with a 17.3 percent price gain on a 46.9 percent surge in Q1 profits. City Bank, Prime Bank and Eastern Bank delivered mixed results—reflecting earnings swings of –9 percent, +63.5 percent and +11.6 percent, respectively.
Non-bank financials posted a 21.7 percent decline, while telecom slid 7.9 percent. Grameenphone’s share price fell 6.3 percent on a 52.7 percent profit drop, whereas Robi’s shares plunged 13.1 percent despite a 20 percent earnings rise.
Other key sectors underperformed: food and allied (–17.1 percent), engineering (–9.5 percent), general insurance (–12.4 percent), cement (–8 percent), textiles (–7.8 percent) and fuel & power (–4 percent). No new IPOs or corporate bonds debuted on either the main or SME boards, and the SME index tumbled 18.1 percent as the BSEC prioritised market discipline.
Foreign investors remained on the sidelines—MSCI maintained “special treatment” status for Bangladesh in May, and the FTSE Frontier Index kept 24 DSE-listed firms in its universe. Over the trailing year, the DSEX has dropped 16 percent, underscoring a protracted downturn.
