Blue-chip stocks slide as global uncertainty triggers market sell-off

Major blue-chip stocks, typically seen as market anchors, led March's decline, with BRAC Bank and British American Tobacco Bangladesh among the hardest hit as global uncertainty weighed on Bangladesh's market.

According to "Monthly Market Wrap: March 2026", published by Sheltech Brokerage Limited, both blue-chip and mid-cap stocks dominated the list of top decliners. BRAC Bank posted the steepest fall, dropping 23.43% month-on-month to close at Tk67, while BAT Bangladesh lost 19.35% to Tk221.30.

Other major laggards included Rahima Food Corporation, Pragati Life Insurance, Saiham Textile Mills, IFIC Bank, Sonargaon Textiles, Dulamia Cotton Spinning Mills, Islami Bank Bangladesh PLC, and Beximco Pharmaceuticals – each recording double-digit losses over the period.

The report attributed the broad downturn to escalating geopolitical tensions in the Middle East, which triggered widespread selling. Investor sentiment weakened sharply on fears of energy supply disruptions and rising inflation – key concerns for Bangladesh's import-dependent economy.

The benchmark DSEX index fell 7.53% during the month, shedding 421.95 points to close at 5,178.31. Market activity also declined significantly, with average daily turnover dropping 24.12% month-on-month to around Tk 600 crore, reflecting heightened risk aversion.

Volatility remained high throughout March. Early sessions were marked by panic selling, dragging the index down by more than 591 points cumulatively. One of the sharpest declines came in a single session, when the index plunged 208.98 points – the steepest one-day fall since 2020 – following an escalation in the Middle East conflict.

Although the market saw a brief mid-month rebound driven by bargain hunting, the recovery proved short-lived. Analysts said the absence of any clear de-escalation signals in global tensions discouraged sustained buying, leading to renewed selling pressure in the latter half.

Sectoral performance indicated widespread weakness, with most major industries posting negative returns. Food and allied, banking, and financial institutions were among the worst performers, reflecting both macroeconomic stress and eroding investor confidence.

Analysts warned that the sharp decline in blue-chip stocks is particularly concerning, as these are typically viewed as stable investments. Their fall signals deeper market uncertainty and growing investor caution, even toward fundamentally strong companies.

They added that the market's near-term trajectory will depend largely on global developments, especially in energy markets, as well as domestic economic stability. Until clearer signals emerge, trading is likely to remain subdued, with volatility elevated