Bangladesh’s capital market faced a significant decline, with the Dhaka Stock Exchange (DSE) experiencing a 4.18%, or nearly Tk33,000 crore drop in the value of all securities including treasury bonds. Initially resilient, the market witnessed a decline as more stocks were freed from floor restrictions, leading to a focus on capital protection rather than short-term profits.
The DSE’s benchmark index, DSEX, recovered briefly before closing the week at 6,156. Over 95% of the newly freed stocks lost value. Despite efforts by institutions and high-net-worth individuals to support the market, numerous stocks, particularly in non-bank financial institutions, energy, textiles, and engineering sectors, fell up to 41%.
The DSE’s annual index review also witnessed the removal of 83 stocks. Critics questioned the timing, suspecting index engineering, but DSE’s Managing Director denied such motives, attributing it to disciplined adherence to indexing methodology.
Source for more details:
