DSEX lost 175-points as Middle East conflict intensify

The equity market index plunged 174 points after 2:30 hours of trading on Tuesday as jittery investors dumped their holdings amid escalating Middle East conflict.

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.

Following the development, the market opened with a steep decline, with the key index shedding over 175 points or 3.14 per cent to reach 5,360 after 2:30 hours of trading at 12:30 pm, when the report was filed.

Bangladesh’s energy security remains heavily dependent on Middle Eastern suppliers --- crude oil from Saudi Arabia and the United Arab Emirates and liquefied natural gas (LNG) from Qatar, making it acutely vulnerable to disruptions in the Gulf.

Bangladeshi businesses have already expressed deep concerns, saying the intensifying conflict may pose fresh challenges and may drive up the cost of doing business as oil prices are expected to rise amid the Middle East conflict.

The blue-chip DS30 index, a group of 30 prominent companies, also plunged 74 points to 2,062.

Trading activities also remained low, and the total turnover amounted to Tk 6.06 billion at 12:30 pm.

The port city bourse, Chittagong Stock Exchange, also tumbled with its CSE All Share Price Index -- CASPI – losing 309 points to 15190 and the Selective Categories Index -- CSCX –shedding 209 points to 9,289 till then.

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