Both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) experienced significant declines as cautious investors chose to sell off their holdings due to rising macroeconomic concerns and political uncertainties surrounding the national election.
Additionally, the Bangladesh Bank raised its key policy rate, the repo rate, by 75 basis points to 7.25%, the highest level in a decade. This move is expected to increase borrowing costs for commercial banks and, consequently, raise lending rates, potentially slowing down the flow of funds into the capital market. Investors may also shift their focus to fixed-income deposits due to higher deposit rates, diverting money away from the stock market.
During the week, the DSEX index of the DSE fell by 22.9 points to 6,262 points, while the CSE All Share Price Index (CASPI) of the CSE dropped 48 points to 18,532.
Despite these challenges, investor participation increased slightly, with the average market turnover rising by 3.0% to Tk467 crore. Notably, low-cap stocks dominated the turnover chart. Deshbandhu Polymer emerged as the top gainer, with a 32% increase, while Emerald Oil Industries experienced the most significant loss, shedding 18.80%.
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