Business Desk

Bangladesh’s capital market experienced a significant downturn last week, with the number of securities recording price declines exceeding those that gained by a factor of 21. Over the week, the Dhaka Stock Exchange (DSE) saw all major indices drop between 5 and 6 percent, while the average daily trading volume decreased by nearly 27 percent. Market capitalization fell by approximately BDT 16,941 crore during the same period.

Market analysts attributed the decline to several negative factors. Among them were the declaration of zero prices for shares of five banks, new margin loan regulations introduced by the Bangladesh Securities and Exchange Commission (BSEC), and an online “lockdown” announcement by the ruling party. Analysts noted that both the margin loan rules and the lockdown had substantial adverse effects. The lockdown led to reduced investor presence at brokerage houses on the last trading day, and concerns over margin loans prompted selling at lower prices, contributing to the market slump.

During the week, a total of 383 securities—including company shares, mutual funds, and corporate bonds—were traded on the DSE. Of these, 17 securities recorded price increases, 363 fell, and 3 remained unchanged, while 30 securities did not see any trading activity.

The DSEX, the DSE’s main index, declined by 265 points, or 5.34 percent, ending the week at 4,703 points compared to 4,968 points at the close of the previous week. The DS30 index, which tracks selected companies, fell by 89 points or 4.60 percent to 1,851 points. The DSES, the DSE’s Shariah-compliant index, dropped by 62 points, or 5.99 percent, to 977 points.

According to brokerage house EBL Securities, the largest contributors to the index decline were shares of Islami Bank, Beximco Pharmaceuticals, LafargeHolcim Bangladesh, Renata PLC, and BRAC Bank.

Over the five trading days of the week, the DSE recorded an average daily turnover of BDT 354.35 crore, down from BDT 484.45 crore the previous week—a decrease of 26.85 percent. The DSE’s total market capitalization stood at BDT 673,975 crore at week-end, down from BDT 690,916 crore, marking a 2.45 percent weekly decline.

Sectoral analysis revealed that the engineering sector dominated trading last week, accounting for 14.14 percent of total DSE turnover. The pharmaceutical and chemicals sector followed with 13.34 percent, while the textiles sector accounted for 9.99 percent. The banking sector held 8.73 percent of turnover, and the energy and power sector accounted for 8.33 percent.

All sectors recorded negative returns during the week. The life insurance sector experienced the largest decline at 18.4 percent, followed by the paper and printing sector (17 percent), jute (15.3 percent), mutual funds (12.87 percent), and information technology (11.42 percent).

On the Chittagong Stock Exchange (CSE), the broader CASPI index fell 3.99 percent to close at 13,401 points, while the CSCX index dropped 3.44 percent to 8,319 points. Total weekly turnover at the CSE amounted to BDT 80.36 crore, down from BDT 97.20 crore the previous week. Out of 272 traded securities, 29 recorded price gains, 236 declined, and 7 remained unchanged.

The sharp declines in both Dhaka and Chittagong stock exchanges reflect heightened investor caution amid regulatory changes, political developments, and sector-specific concerns, raising questions about short-term market stability.