Following the US’s imposition of a visa ban on individuals related to the undermining of the democratic election process in Bangladesh, the country’s stock market collapsed on September 24, 2023. The DSEX index closed at 6,280, marking a 0.45% decrease of 28 points compared to September 23, 2023. Similarly, the DS30, the blue-chip index, dropped by 0.43% to 2,136.
Investor sentiment was affected by the US visa restrictions, with institutional investors expressing concerns about potential political instability. Bangladesh’s political situation and the imposition of floor prices by the Bangladesh Securities and Exchange Commission in July 2022 have contributed to reduced investor confidence. The floor prices prevented a further decline in market indices but did not prevent the recent drop.
Stocks of companies like Agrani Insurance Company Limited, Miracle Industries Limited, and Tosrifa Industries Limited saw significant declines, with Agrani Insurance Company Limited dropping the most by 11 percent. The turnover of the DSE decreased by 32% to Tk 500 crore. Meanwhile, the Chittagong Stock Exchange’s main index, CASPI, fell by 0.36% to 18,595, with turnover dropping by 66%t to Tk 8 crore.
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