Dhaka Stock Exchange (DSE) experienced a significant decline, with the benchmark index reaching a three-week low on 12 June. The market initially showed positive momentum but faltered due to heavy selling pressure on small-cap stocks, particularly in the life insurance, general insurance, and jute sectors. The decline was attributed to cautious investor sentiment influenced by the draft income tax bill 2023 and concerns about the insurance industry’s failure to protect policyholders’ interests. The political and economic uncertainties ahead of the national election also contributed to the market decline. Inflation reached a decade-high, further impacting investor confidence. The market turnover dropped below Tk 10 billion, and the life insurance sector dominated the turnover list. The DS30 Index and DSES Index, representing blue-chip and Shariah-based companies respectively, also experienced losses.
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