Stocks suffer most in four years

Dhaka stocks suffered their sharpest decline in over four years on Wednesday, with the benchmark index plunging 3.015 per cent, driven by investor concerns over escalating geopolitical tensions following India’s airstrikes in Pakistan.

The DSEX, the key index of the Dhaka Stock Exchange (DSE), dropped by 149.31 points to close at 4,802.42. In percentage terms, this is the largest single-day fall in four years and one month. On April 4, 2021, the DSEX fell by 3.44 per cent, which was up by 0.425 per cent from this day’s fall.

With Wednesday’s fall, the index also slipped to its lowest level in four years and eight months since August 25, 2020, when it stood at 4,781.57.

“Stock markets are very sensitive. While it’s unlikely that the India-Pakistan conflict will have a direct financial impact on Bangladesh, such tensions typically spark fear among investors,” said Mohammad A Hafiz, former president of the Bangladesh Merchant Bankers Association (BMBA).

The blue-chip index DS30, comprising 30 leading companies, decreased by 40.34 points to 1,793, while the DSES Index, representing Shariah-compliant companies, decreased by 41.92 points to 1,047.99 by the close.

Turnover, a crucial indicator of the market, stood at Tk 5.16 billion, down 6.05 per cent from the previous trading day.

The majority of the stocks saw a price decrease, as out of the 399 issues traded, 9 closed higher, 385 ended lower, and 5 remained unchanged on the DSE trading floor.

NRB Bank was the most-traded stock with shares worth Tk 371.21 million changing hands, followed by Beach Hatchery, Midland Bank, Baraka Patenga Power and BRAC Bank.

The Chittagong Stock Exchange (CSE) ended up with its All Share Price Index (CASPI) decreasing 270.54 points to settle at 13590 and the Selective Categories Index (CSCX) decreasing 157.28 points to settle at 8305.70

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