Staff Reporter :
Dhaka stocks experienced their steepest decline in more than four years on Wednesday, as escalating geopolitical tensions between India and Pakistan sparked widespread investor panic and heavy sell-offs.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) plunged by 149.31 points, or 3.015 per cent, to close at 4,802.42. This marks the largest single-day fall since 4 April 2021, when the index dropped by 3.44 per cent. Wednesday’s close also represents the index’s lowest level since 25 August 2020, when it stood at 4,781.57.
“Stock markets are highly sensitive to geopolitical developments. While the India-Pakistan conflict is unlikely to have a direct economic impact on Bangladesh, such tensions typically incite fear among investors,” said Mohammad A Hafiz, former president of the Bangladesh Merchant Bankers Association (BMBA).
The sharp decline followed India’s airstrikes on nine sites in Pakistan on Wednesday, which New Delhi described as targeting “terrorist infrastructure.” The strikes came two weeks after a deadly attack in Indian-administered Kashmir killed 26 people, which India has attributed to Pakistan-based militants, according to Reuters.
The blue-chip DS30 index, comprising 30 leading companies, shed 40.34 points to close at 1,793, while the DSES Index, which tracks Shariah-compliant stocks, declined by 41.92 points to 1,047.99.
