Market confidence shaken as DSEX falls
Staff reporter :
The Dhaka Stock Exchange’s (DSE) benchmark index, DSEX, plunged by 54.58 points on Thursday, closing at 4,781 – its lowest level in nearly five and a half years. The last time the index hovered around this mark was on November 12, 2019, when it stood at 4,779.
Market sentiment continued to sour, driven by sustained selling pressure from large investors, particularly during the latter half of the trading session. The blue-chip index, DS30, also declined, losing 20 points to settle at 1,770.
Turnover on the DSE totaled Tk 296.84 crore, the lowest in the past nine trading sessions, underscoring persistent investor caution and waning confidence in the market. Despite the slump, Thursday’s turnover was slightly higher – by about Tk 26.6 crore – compared to the previous session’s Tk 291 crore.
Out of 395 companies traded on Thursday, 317 saw their share prices fall, while only 42 advanced and 36 remained unchanged, highlighting the overwhelmingly bearish tone.
The continued downturn has triggered fear and frustration among retail investors, many of whom are being forced to sell at a loss amid growing uncertainty.
Confidence in the market has reached a critical low, with questions being raised about market transparency, the level of institutional participation, and the effectiveness of regulatory oversight.
Looking back, the DSE’s highest transaction volume was recorded on August 16, 2021, with more than Tk 2,953 crore traded when the index was at 6,048 points. The DSEX’s all-time high was reached on October 10, 2021, at 7,367.99 points.
Analysts warn that without swift and effective intervention, the current downtrend could deepen into a more serious crisis.
Meanwhile, activity on the Chittagong Stock Exchange (CSE) also weakened. The CSE’s key index, CASPI, dropped by 137.46 points to 13,477. The previous day, it fell by 71.46 points.
Trading on the CSE totaled Tk 10.11 crore, slightly down from Tk 11.2 crore in the prior session.
Of the 205 companies traded, 151 declined, 37 advanced, and 17 remained unchanged.