Bangladesh’s stock market experienced a significant downturn this week, fueled by regulatory actions, rising interest rates, and global geopolitical tensions. The Dhaka Stock Exchange (DSEX) plummeted by 176 points, erasing Tk 135 billion in market capitalisation, its sharpest decline in 31 months.
The market faced selling pressure after the securities regulator imposed a record Tk 4.28 billion fine on nine entities for manipulating Beximco’s shares. Investor protests followed, with demands for the resignation of the market regulator’s chief.
Other contributing factors include rising interest rates, reduced business activity, and concerns over corporate earnings. Large-cap stocks such as Islami Bank and Grameenphone led the decline, and 83% of traded stocks saw price drops. Analysts warned that while some sectors saw temporary gains, the market is under sustained pressure, exacerbated by both local and global economic challenges. Turnover and overall investor confidence have sharply declined.
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