The Dhaka Stock Exchange (DSE) experienced a significant downturn today, with 89% of traded stocks declining after the Bangladesh Bank raised the policy rate by 50 basis points to 9.50%. The benchmark index DSEX fell by 41 points, closing at 5,736, while the blue-chip index DS30 dropped 14 points to 2,095. Only 28 stocks advanced, compared to 355 that declined, leading to an 11% increase in market turnover, which reached Tk797 crore.
The market capitalization decreased by Tk5,000 crore, settling at Tk6.89 lakh crore. Analysts attribute the market’s sluggish performance to rising funding costs and a shift in investor interest toward fixed-income instruments. Additionally, the recent downgrading of 27 stocks to the Z category by the DSE has shaken investor confidence and fueled concerns over policy uncertainty.
Despite a positive start driven by certain bank stocks, selling pressure ultimately led to broad declines. Bank stocks accounted for the highest turnover at 35.3%, while sectors like jute, paper, and ceramics saw the most significant losses. Islami Bank’s share price surged by 10%, prompting the securities regulator to investigate unusual price movements. In contrast, Fu Wang Food led the losers’ list with a 9.94% drop, followed by other companies with substantial declines.
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