Stocks plunge post-budget as investors reacted negatively

The prime index of the Dhaka Stock Exchange (DSE) dipped below the 5,200-mark after 38 months on Sunday, the post-budget first session, as the budgetary measures virtually failed to meet investors’ expectations.

Market operators said the proposed budget has been unable to meet the investors’ expectations and the volatile macroeconomic outlook has compelled the majority of the investors to sell-off their shares.

Finance Minister Abul Hassan Mahmood Ali on Thursday placed a record Tk 7.97 trillion national budget for FY25 at a time when the stock market is passing through a critical time amid lingering macroeconomic challenges.

The market opened sharply lower which continued until the end of the session with no sign of reversal amid persistently lacklustre trade.

The DSEX, the key index of the Dhaka Stock Exchange, finally went down by nearly 66 points or 1.26 per cent to settle at 5,171, the lowest since April 11, 2021.

The blue-chip index DS30, a group of 30 prominent companies, also dropped more than 22 points to 1,835 while the DSES Index, which represents Shariah-based companies, shed 16 points to 1,120.

Turnover, a crucial indicator of the market, stood at Tk 3.58 billion, which was 34 per cent lower than the previous day’s turnover of Tk 5.43 billion.

Price of almost 87 per cent of traded shares lost price, as out of 392 issues traded, 340 saw price erosion, 33 closed higher and 19 remained unchanged.

The Chittagong Stock Exchange (CSE) also ended sharply lower with the CSE All Share Price Index – CASPI –losing 106 points to 14,840.

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