Bearish mood grips stock market amid deepening mistrust
Of the 412 issues traded at DSE, 141 advanced, 230 declined, 23 remained unchanged, and 19 were not traded
Last week was severely volatile for the country's capital bourse as growing political and economic uncertainties, coupled with eroding investor confidence, led to heavy sell-offs and mounting market mistrust.
The Dhaka Stock Exchange's key index, DSEX, continued its downward trend until slightly picking up on Thursday. Over the week, the DSEX dropped 16 points to close at 4,902.
The blue-chip index DS30 fell by 2 points to 1,820, while the Shariah-compliant index DSES declined 20 points to 1,074. The DSE SME Index (DSMEX) also slipped 7 points to 916.
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Investor sentiment has been further undermined by discontent with the Bangladesh Securities and Exchange Commission (BSEC), particularly over internal instability and the regulator's perceived failure to restore confidence in the capital market.
Moreover, general investors staged a dramatic protest in Dhaka's Motijheel area last week, demanding the resignation of BSEC Chairman Khondoker Rashed Maqsood. In a powerful display of frustration, participants held a symbolic "shroud rally" — lying in the street wrapped in white burial shrouds to signify the death of investor hope.
The demonstrators accused the chairman of lacking adequate knowledge of the stock market and failing to protect investor interests.
Several former BSEC chairmen and other market stakeholders have also expressed concern over the commission's current leadership.
Market analysts attribute the continued decline to several factors, including a sharp rise in gas prices, which is expected to push up industrial production costs. Institutional investors remain largely inactive, while retail investors continue to exit the market in search of safer alternatives.
However, the weekly average turnover increased by 37.04% to Tk483 crore compared to the previous week, with the total turnover at Tk2,416 crore, up from Tk1,410 crore. However, market capitalisation decreased by 0.63%, to Tk6,52,445 crore from Tk6,56,569 crore.
Of the 412 issues traded at DSE, 141 advanced, 230 declined, 23 remained unchanged, and 19 were not traded.
In its weekly commentary, EBL Securities noted that the market remained severely volatile over the week as sell pressure intensified, spurred by investor anxiety over both domestic instability and escalating geopolitical tensions in neighbouring countries.
