DSE records steepest decline in six years

The equity market index plunged 209 points on Tuesday as jittery investors dumped their holdings amid escalating Middle East conflict.

The broad index of the Dhaka Stock Exchange, DSEX, fell 208.98 points to close at 5,325, down from 5,534 in the prior session.

The DSE index plunged 3.78 per cent, marking the steepest single-day decline since 18 March 2020, when the market had dropped 4.47 per cent.

Markey analysts said the ongoing conflict could drive up the cost of doing business as oil prices are expected to rise further amid the growing Middle East crisis.

The intensifying Iran-Israel conflict has created ripples across the globe, affecting economies far removed from the battle zones. Bangladesh is no exception.

Global media reports that world energy markets face one of their gravest shocks in decades as joint US and Israeli strikes on Iran and Tehran’s retaliatory missile attacks across the Gulf disrupt oil exports from the world’s most important producing region.

The conflicts has also fuelled fears of a fresh energy crisis that could ramp up inflation.

While oil prices rise amid instability in the Middle East and key sea routes such as the Strait of Hormuz become insecure, Bangladesh is confronted with multiple economic stresses.

Economists and market insiders warn that if the conflict persists, the consequences could be immediate, longer shipping routes, higher freight costs, and ultimately rising energy prices, which would directly hit production costs across the economy.

The blue-chip index DS30, comprising 30 leading companies, decreased by 85.73 points to 2,050, while the DSES Index, representing Shariah-compliant companies, decreased by 36.34 points to 1,063 by the close.

Turnover went up 13.5% to BDT 8.85 billion from TK 7.80 billion previously.

The majority of the stocks saw a price decrease, as out of the 391 issues traded, 31 closed higher, 349 ended lower, and 11 remained unchanged on the DSE trading floor.

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