Written by The Banking Post
Stocks plunged on the first trading day after the Eid holidays, as rising geopolitical tensions in the Middle East rattled investor confidence and triggered a broad sell-off.
Trading resumed after a week-long break, but the Dhaka Stock Exchange (DSE) immediately came under pressure, with the benchmark DSEX index falling 69 points, or 1.30 per cent, to 5,285.
Analysts attributed the slump to fears of energy supply disruptions and rising inflation, as Bangladesh remains heavily dependent on imported fuel routed through the Strait of Hormuz.
“The investors remained wary of ongoing developments surrounding the Middle East war and adopted a cautious approach,” said Akramul Alam. “Most preferred to stay on the sidelines amid uncertainty.”
The downturn was led by blue-chip stocks, particularly in the banking sector, which had posted gains before the holidays. Major decliners included BRAC Bank, Islami Bank Bangladesh, Robi Axiata, City Bank and Prime Bank.
BRAC Bank alone contributed over 19 points to the index fall after its share price dropped more than 6 per cent, followed by Islami Bank Bangladesh.
The DS30 index, comprising leading blue-chip companies, declined 39 points, while the Shariah-based DSES index lost 8 points.
Most sectors ended in the red, with banking stocks leading the decline, followed by telecom, non-bank financial institutions, food, power, pharmaceuticals and engineering.
Market breadth remained sharply negative, with 243 stocks declining against 121 gainers, while 27 remained unchanged out of 391 traded issues.
Despite the fall in prices, trading activity edged up slightly, with turnover rising 7 per cent to Tk 4.92 billion. The banking sector accounted for the largest share of transactions.
The slide extended to the Chittagong Stock Exchange (CSE), where the CASPI index dropped 76 points and the CSCX index fell 47 points.
Analysts say continued volatility in global energy markets and geopolitical uncertainty may keep investors cautious in the near term.
