The country's capital market opened the week on a sharply negative note today (5 April), as stocks tumbled amid heavy selling pressure, wiping out significant value and deepening investor anxiety over economic uncertainty and policy direction.
The benchmark index of the Dhaka Stock Exchange (DSE), DSEX, dropped by 107 points, or 2.05%, to close at 5,112, marking one of the steepest single-day declines in recent weeks.
The blue-chip DS30 index also fell significantly, shedding 35 points, or 1.76%, to settle at 1,945.
The broad-based downturn reflected overwhelming bearish sentiment, with 354 issues declining against just 25 gainers, while 11 remained unchanged.
Market turnover also took a hit, falling by 18% to Tk512 crore, indicating reduced participation as investors opted to stay on the sidelines. Total market capitalisation dropped by around Tk8,500 crore in a single session, underscoring the scale of the sell-off.
Major large-cap stocks acted as key draggers behind the decline, including Grameenphone, BRAC Bank, Robi Axiata, BAT Bangladesh, and Square Pharmaceuticals, all of which witnessed significant price erosion.
According to EBL Securities, the market came under pressure from the opening bell, as investor sentiment remained fragile amid concerns over macroeconomic stagnation following the government's recent austerity measures.
The brokerage noted that selling pressure dominated from the opening bell, leaving little room for recovery throughout the session as investors reacted cautiously to ongoing uncertainties.
The downturn comes just a day after the stock exchanges shortened trading hours by 30 minutes in line with government directives aimed at reducing fuel consumption.
Market insiders believe the move, coupled with broader austerity measures, has further dampened investor confidence at a time when the market is already struggling with low liquidity and weak sentiment.
Adding to the uncertainty, investors are closely watching developments surrounding regulatory leadership.
The recent appointment of a special assistant for investment and capital markets to the prime minister initially raised expectations of changes in the leadership of the Bangladesh Securities and Exchange Commission.
However, the absence of any immediate reshuffle has left many investors cautious, with some opting to remain inactive until there is greater clarity.
Sector-wise, all major segments posted losses, with mutual funds leading the decline, followed by ceramics and jute. Despite the broad-based losses, a handful of stocks managed modest gains, while several others faced steep corrections.
The bearish trend was mirrored at the Chittagong Stock Exchange, where the CSCX index fell by 128 points to 8,854, and the CASPI dropped 228 points to close at 14,473. Interestingly, turnover at the port city bourse surged significantly, suggesting selective participation despite the overall negative sentiment.