Tk1.18 lakh crore wiped out of market as DSEX sheds 16.49% in 2024
Both Dhaka and Chattogram bourses will be closed today, the last day of this year, due to the bank holiday
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), registered a substantial decline of 16.49% or 1,030 points in 2024, reflecting persistent market volatility and economic challenges that eroded investor confidence.
The index, however, ended the year on a positive note, gaining 11 points in the final trading session to close at 5,216 on Monday, according to DSE data.
On Tuesday, the last day of this year, both Dhaka and Chattogram bourses will be closed due to the bank holiday.
According to market insiders, investors faced a turbulent year marked by the withdrawal of floor price restrictions, widespread student protests, the fall of the Awami League government, and sweeping regulatory reforms. These factors weighed heavily on the market, resulting in substantial losses that overshadowed the modest year-end recovery.
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In addition to the drop in DSEX, the market capitalisation of the DSE shrank by Tk1.18 lakh crore, indicating substantial value erosion for investors.
Investor sentiment further soured, with beneficiary owner (BO) accounts falling by 5.14% to 16.82 lakh, and BOs holding share balances dropping by 9.39%, according to the Central Depository of Bangladesh.
The sharp decline in the market led investors to organise protests, including a long march and a blockade of the Bangladesh Securities and Exchange Commission (BSEC). Some frustrated investors even locked the main gate of the commission.
Saiful Islam, president of the DSE Brokers Association, told TBS that 2024 had been a frustrating year for investors.
"After the fall of the Awami League government, the market saw a temporary spike, but it didn't last as investor confidence quickly deteriorated," he said. "This was primarily due to the failure of BSEC's reform process to restore trust in the market."
Islam expressed concerns about the future, stating, "At the moment, we have no optimism for 2025, as we have yet to hear any concrete promises from the new commission."
Following the fall of the Awami League government on 5 August, significant changes were made to the leadership of the BSEC. The Shibli Rubaiyat-ul-Islam-led commission was replaced by a new one, with former banker Khandaker Rashed Maqsood appointed as its head.
Additionally, the boards of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) were restructured. Despite these changes, investor confidence in the market has yet to be restored.
BSEC Executive Director and Spokesperson Md Rezaul Karim said that 2024 is an eventful year. It is hoped that the steps taken by the new commission in the interest of the market will yield positive results in 2025.
The new commission launched investigations into past irregularities and corruption, but so far, no visible outcomes have emerged. A task force was also formed to provide recommendations for long-term reforms in the stock market, but it has yet to yield any results. As a result, frustration among investors has grown, according to the managing director of a brokerage firm.
The current commission has sparked discussion by imposing hefty fines on influential individuals, anonymous account holders, managing directors of listed companies, and the masterminds behind stock manipulations in recent years. However, doubts persist regarding whether these fines will actually be collected, he added.
Top performers in 2024
Investors saw the highest returns in 2024 from Lovello Ice-Cream, as its share price surged by 128%, reaching Tk86.80.
On 13 May, in response to a query from the DSE, the company stated there was no price-sensitive information behind the unusual movement in its share price.
However, on 9 September, the company revealed that its board had decided to invest Tk150 crore to set up a second ice cream production unit. Later, on 25 November, Lovello announced plans to acquire a food company through the DSE.
Other top gainers included Midland Bank, which saw a 124% price hike, Beach Hatchery with a 98% increase, Sikder Insurance with a 91% rise, and Fine Foods, which gained 71%. According to the DSE, however, there was no clear rationale behind the price increases of these companies.
Additionally, New Line Clothings was the worst performer of the year, with its share price plummeting by 84% to close at Tk6.60. Other notable losers included GSP Finance, Phoenix Finance, Fortune Shoe, and Sonali Paper.
