Dhaka stocks fell 73 points yesterday on fears of a regulatory interference in the interest rate ceiling, as well as the possibility of Russia’s war on Ukraine putting the global economy in jeopardy amid rising oil costs.
The DSEX fell 73 points, or 1.10 per cent, to 6,591 by the close of the trading day, marking the DSEX’s second straight day of losses (DSE). According to a top official of a merchant bank who requested anonymity, the US and UK have warned that their economies may enter a recession, which is causing fear among local investors because both countries are significant export destinations for Bangladesh. Investors are concerned about recent increases in edible oil prices as well as Sri Lanka’s economic and political upheaval.
Stock prices fell sharply as nervous investors went on a selling spree, while risk-averse investors stayed away from the market due to the high volatility that characterized the trading session since the central bank ordered all banks to provide a maximum of 6 per cent interest on deposits and 9 per cent interest on lending starting April 1, 2020. Meanwhile, according to DSE data, both the DS30 blue-chip index and the DSES shariah-based index lost 15.13 and 15.48 points, respectively. Except for miscellaneous, which climbed 0.1 per cent, all sectors saw price corrections, with travel and leisure down 3.8 percent, services and real estate down 3.2 per cent, and textiles down 2.8 per cent.
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