Stock index loses 110 points in early trading as Middle East conflict intensifies
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The stock index lost more than 110 points in early trading on Sunday as investors dumped their holdings, fearing further fall amid the intensifying Middle East crisis.
The US-Iran conflict entered its ninth day on Sunday, and there is no sign of ending the conflict soon, creating fear among Bangladeshi businesses as oil prices have already surged.
The strike put nearly all oil-producing Gulf Arab countries on edge as fear of escalation grew with Iran responding by launching a missile strike towards Israel.
Following the development, the market opened sharply lower on Sunday after the previous week's big fall, with sellers predominant across the trading floor amid heightened concerns over the market’s momentum.
The DSEX, the prime index of the Dhaka Stock Exchange, slid 110 points or 2.10 per cent to 5482 within 30 minutes of trading at 11:00 am.
The ongoing conflict could drive up the cost of doing business as oil prices are expected to rise further amid growing Middle East tensions, market operators said.
The intensifying Iran-Israel conflict has created ripples across the globe, affecting economies far removed from the battle zones. Bangladesh is no exception.
While oil prices rise amid instability in the Middle East and key sea routes such as the Suez Canal and Strait of Hormuz become insecure, Bangladesh is confronted with multiple economic stresses.
Bangladesh businesses have already expressed concerns, saying the intensifying Middle East conflict may pose fresh challenges.
The Russia-Ukraine war badly impacted the local economy as well as the stock market. So, investors are worried that another war may further deteriorate the situation.
Of the issues traded so far, 314 declined, only 33 advanced, and 32 remained unchanged.
Turnover also remained low and stood at Tk 1.46 billion.
The port-city bourse also opened sharply lower, with its All Shares Price Index dropping 211 points to 14,613 till then.
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