Muhammad Ayub Ali :
Dhaka Stock Exchange (DSE) recovered from a significant fall in the early trading as investor sentiment took a hit following the US administration’s announcement of a 37 percent tariff on Bangladeshi products entering the American market.
Though the stock markets of Europe, America and Asia have been experiencing a continuous decline due to the new reciprocal tariffs by the United States, new instability has arisen in the global economy.
However, market experts have advised investors not to panic in this regard.
Md Saiful Islam president of Dhaka Stock Exchange (DSE) Brokers Association (DBA) said, there is no scope to have impact of the new US tariff announcement on Bangladesh.
I do not see any chance of the country’s capital market going much lower than the current level. I request investors not to panic in this regard, he added.
Speaking to reporters at the Secretariat on Sunday morning, Finance Advisor Salehuddin Ahmed said, “It will not be difficult to handle the impact of the new US tariffs on the economy. The government has taken the initiative to negotiate with the US administration on this. I am hopeful that something good will happen.”
Stocks at the Dhaka bourse finally recovered from a significant fall in the early trading session today (6 April), the first trading session of the week and after the nine-day Eid holiday.
At the end of the trading session today, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), declined 13 points to 5,205 points.
Meanwhile, at the opening of the trading session, the DSEX lost 45 points, but gradually recovered in the late hours.
Of the traded stocks, 101 scrips advanced, 262 declined, and 30 remained unchanged.
Turnover at the DSE stood at Tk415.50 crore, higher than Tk315 crore in the previous trading session on 27 March.
Amid the imposition of US tariffs, the Bangladesh capital market witnessed a sharp fall at the opening of the trading session.
US President Donald Trump last Wednesday (2 April) displayed a poster during an event in the White House that listed reciprocal tariffs, including 37 percent on Bangladesh, 26 percent on India, 34 percent on China and 20 on the European Union, as a response to duties put on US goods.
DSE Trading was closed due to the Eid vacation when Trump’s tariff announcements were made.
Trump’s tariff announcement shook global stock markets, wiping out $5 trillion in value for S&P 500 index companies by Friday’s (4 April) close, a record two-day decline.
Driven by recession fears, prices for oil and commodities plunged, while investors fled to the safety of government bonds, reports Reuters.
There is no need for investors in the country’s capital market to panic because most of the export-oriented ready-made garment companies in Bangladesh are not in the capital market, market experts says.
And those that are listed in the capital market have large markets in Europe. However, a large part of the companies that export denim products go to the US market. There may be some impact on those products.
Besides, the country’s capital market is currently at its lowest level. Therefore, there is no chance of the impact of such an announcement being very much. If investors do not panic, this fear can be relieved very quickly.
