BD becomes world’s worst-performing equity mkt in Sept

Staff Reporter :

Bangladesh’s equity market was the worst performer globally in September, as the benchmark index of the Dhaka Stock Exchange (DSE) plunged 3.2 percent amid broad-based profit-booking following three months of recovery.

According to a monthly report by EBL Securities, the DSEX lost 179 points during the month to close at 5,416, marking the steepest decline among global markets.
In contrast, South Korea led global gains with a return of over 10 percent, followed by Taiwan (9 percent) and Pakistan (7.34 percent). Only the Philippines joined Bangladesh in the red, with a marginal fall of 0.30 percent.

The month began on a positive note as the DSEX crossed the 5,600 mark for the first time in 11 months, fueled by optimism over improving macroeconomic indicators.
However, the rally was short-lived. Profit-booking pressure, a lack of new catalysts, and cautious investor sentiment soon dragged the market lower.

“Investors turned cautious amid volatile momentum and the absence of any fresh stimulus to revive confidence,” EBL Securities said in its analysis.

The DS30, which tracks blue-chip companies, fell by 111 points to 2,082, while the DSES Index, representing Shariah-based stocks, dropped by 55 points to 1,172.
Despite a few short-lived rebounds, trading remained largely subdued as investors adopted a wait-and-see approach ahead of the upcoming earnings season.
Average daily turnover declined 6.3 percent to Tk 8.70 billion, reflecting weakened participation. While selective stocks saw temporary gains due to opportunistic buying at perceived low valuations, overall market sentiment remained bearish.

Analysts attributed the weakness partly to lingering uncertainty surrounding recent regulatory measures designed to improve market discipline, as well as a lack of institutional support and liquidity.
Despite the stock market downturn, Bangladesh’s macroeconomic outlook has shown gradual improvement following a turbulent period marked by the pandemic, global supply shocks, and domestic political changes.
The economy is being supported by rising exports, robust remittance inflows, and stabilizing foreign exchange reserves.
Remittance inflows reached $2.7 billion in September, up 11.69 percent year-on-year, as more expatriates used official channels amid a stable exchange rate regime.
EBL Securities noted that the recent U.S. tariff relief for Bangladeshi exports and the announcement of a national election roadmap could help ease political tension and boost investor confidence in the months ahead.
International development agencies project Bangladesh’s GDP growth at around 5 percent for FY26, signaling a steady, if modest, recovery.
Looking forward, EBL expects that a potential policy rate cut and easing bond yields could help restore momentum in the equity market.
However, it warned that political friction during the electoral transition, banking sector vulnerabilities, and weak private investment remain key downside risks for the near term