The Dhaka Stock Exchange (DSE) experienced a turbulent week as concerns over US visa sanctions and political issues led to a sharp decline in equity indices. The DSEX, DSE’s broad-based index, fell by 19 points to 6,265 on September 30, 2023. Shariah index DSES and blue-chip DS30 also ended in the red at 1,357 and 2,136 points, respectively.
Despite the bearish trend, investor participation increased, with daily turnover rising by 26% to Tk531 crore. Meanwhile, the CSE’s all-share price index, Caspi, lost 19 points and settled at 18,560, with turnover declining by over 76% to Tk12.1 crore on the same day.
Investor sentiment was impacted by the upcoming general election and US visa sanctions, prompting many to sell their shares. While some weak companies saw increased trading activity, good company shares remained stagnant. General insurance, food and allied, and paper were the leading sectors in terms of turnover.
With only a handful of companies seeing increased trading, market experts suggest that investing in fundamentally sound stocks may be a wise strategy despite the current challenges in the market.