The downward trajectory of Bangladesh’s stock market continues unabated, leading to rising concern and instability among investors. Over the last six trading sessions, the country’s main bourse, the Dhaka Stock Exchange (DSE), has suffered a sharp decline, with its benchmark index, the DSEX, plunging by a total of 186.49 points. During this period, nearly BDT 9,126 crore in market capitalization has been wiped out.
On Wednesday, May 28, the DSEX index fell by 62.72 points, closing at 4,615. This single-day loss affected a significant portion of listed securities. Of the 398 companies and mutual funds traded on the DSE that day, share prices dropped for 295 — approximately 74%. Only 63 companies saw gains, while prices for 40 remained unchanged.
The market opened with a 10-point drop, and the negative trend intensified as the day progressed, triggering panic among retail investors. Turnover also declined, with total trading volume reaching BDT 264.98 crore — about BDT 8 crore less than the previous session.
Market analysts suggest that the continuous decline is eroding investor confidence, discouraging new investments and causing liquidity to dry up. The negative momentum extended to the Chittagong Stock Exchange (CSE) as well, where the all-share index dropped by 150.41 points to settle at 13,013. Daily turnover at the CSE stood at only BDT 18.52 crore.
Industry insiders cite not only economic challenges but also a deepening crisis of investor trust as the core reason behind the ongoing market downturn. They point to persistent issues such as lack of transparency, weak governance, and ineffective regulatory oversight as major concerns. According to them, the Bangladesh Securities and Exchange Commission (BSEC) has failed to implement effective measures to stabilize the market.
Adding to the pressure, a recent directive from the Bangladesh Bank has exacerbated fears. The central bank has ordered 18 listed banks not to issue any dividends for the year 2024, a move that analysts warn could further spook investors, particularly those holding banking sector stocks.
Economists warn that the country’s stock market is now facing a critical situation. With the DSEX in a prolonged slump, trading volumes declining, investor sentiment deteriorating, and regulators failing to provide clear direction, capital is rapidly evaporating from the market. Experts stress the urgent need for long-term, effective reforms to restore stability and investor confidence.