Staff Reporter :
Investor sentiment in Bangladesh’s stock market dampened further as daily trade turnover on the Dhaka Stock Exchange (DSE) fell below Tk 4 billion on Wednesday, marking the lowest level in three weeks. This represents a 24% decline from the previous day’s turnover of Tk 3.93 billion, reflecting heightened macroeconomic and political concerns.
Market analysts attribute this downturn to ongoing economic challenges, political uncertainties,
Non-performing loans (NPLs) in the banking sector hit an unprecedented Tk 2.85 trillion in September, comprising 17% of total outstanding loans. This exposed the fragile state of the banking sector, further unsettling investors.
Moody’s Investors Service downgraded Bangladesh’s long-term sovereign rating to B2 from B1, changing the outlook from “stable” to “negative.” The agency cited liquidity risks, external vulnerabilities, and the impact of political and social unrest as major concerns.
Prolonged political uncertainties, coupled with sluggish economic growth, have forced the country to rely on short-term domestic borrowing to finance deficits, amplifying liquidity risks.
The DSEX index gained marginally by 2.6 points to close at 5,245 on Wednesday, after losing 113 points over the previous three sessions.
DS30, representing 30 prominent companies, shed over 8 points to settle at 1,934.
The Shariah-compliant DSES index gained 8.6 points to reach 1,162.
Non-bank financial institutions emerged as top performers, gaining 5.2%, followed by the banking and telecom sectors. The power sector recorded a decline of 0.6%.
The market suffered a loss of 113 points in the three sessions to Tuesday while it gained slightly by 2.6 points to 5,245 on Wednesday.
The market ended in the green zone, said EBL Securities, because of price appreciation of particular large-cap stocks, which had experienced significant corrections in the previous few trading days.
Cautious investors were observing the market’s momentum to identify sector-specific stocks with potential to recover following earnings disclosures.
CSE transactions involved 2.83 million shares and mutual fund units, resulting in a turnover of Tk 62 million. Market operators foresee cautious investor participation as political and economic uncertainties persist. Investors are expected to focus on sector-specific opportunities and earnings disclosures in the coming weeks.
