The Dhaka and Chittagong stock exchanges witnessed a substantial decline as large-cap stocks experienced a sharp fall in prices, intensifying selling pressure across the market. The DSEX, the broad index of the Dhaka Stock Exchange (DSE), plummeted 78.6 points to settle at 5,644 points, down from 5,722 points in the previous trading session. This broad-based sell-off was driven by growing investor concerns over a possible earnings downturn, the nationwide gas and electricity crisis, and ongoing geopolitical tensions in the Middle East.
From the opening bell, the market remained under pressure as investors continued to offload shares, particularly those of large-cap companies. The heightened risk aversion among investors led to almost all sectors ending the session in negative territory. Market turnover also declined by 15.4 percent to Taka 6.0 billion from Taka 7.1 billion in the previous session, indicating a further weakening of investor participation.
Textile stocks accounted for the highest share of turnover at 24.6 percent, followed by pharmaceuticals at 11.7 percent and general insurance at 11.6 percent. Among the sectors, textiles suffered the highest correction, falling 3.3 percent, while services and mutual funds declined by 2.6 percent and 2.5 percent respectively. Of the 395 issues traded on the DSE, only 13 advanced, while 352 declined and 30 remained unchanged, underscoring the breadth of the sell-off.
The Chittagong Stock Exchange (CSE) also closed lower. Its selected index, CSCX, fell 86.2 points, while the All Share Price Index (CASPI) declined 173.8 points. The widespread selling pressure reflects the deepening concerns among investors regarding the economic environment and corporate earnings prospects.
The recent market downturn highlights the vulnerability of the stock exchanges to external pressures, including energy crises and geopolitical instability. Investors are likely to remain cautious until there are clear signs of resolution to these underlying issues. The performance of large-cap stocks, often seen as a barometer of market health, will continue to be closely watched for indications of broader market trends.
