Bangladesh’s stock market saw a sharp decline in March 2026, with the benchmark DSEX index falling 7.53% to 5,178.31, down from 5,600.27 in February.
The drop, equivalent to about 422 points, came amid a broad global sell-off, as all major equity indices tracked in the DSE Monthly Market Review recorded monthly losses.
While Bangladesh was among the harder-hit markets, steeper declines were observed in Indonesia (-14.42%), Pakistan (-11.50%), and India (-11.49%).
March proved a punishing month for global equities, with no market spared. In the Asia-Pacific region, Indonesia’s Jakarta Composite plunged 14.42% to 7,048.22 from 8,235.49 in February.
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Pakistan’s KSE 100 dropped 11.50% to 148,743.31, while India’s S&P BSE SENSEX fell 11.49% to 71,947.55.
Taiwan’s weighted index declined 8.18% to 32,518.16, Thailand’s SET lost 5.24%, and Malaysia’s KLSE Composite slipped 1.53%.
Among major Asian markets, Japan’s Nikkei 225 fell 9.56% to 53,221.50, Hong Kong’s Hang Seng dropped 6.92% to 24,788.14, and Singapore’s Straits Times Index edged down 2.19% to 4,885.45—the smallest loss in the region.
In Europe, Germany’s DAX declined 10.30% to 22,680.04, while the UK’s FTSE 100 fell 6.73% to 10,176.45. The US Dow Jones Industrial Average shed 5.38% to 46,341.51, reflecting a broad risk-off sentiment globally.
Despite widespread annual gains across most markets, Bangladesh and India stood out as the only Asia-Pacific economies posting year-on-year declines.
The DSEX fell 0.78% compared to March 2025, while India’s SENSEX dropped a steeper 7.06%.
In contrast, Taiwan’s index surged 57.12% year-on-year, Japan’s Nikkei rose 49.42%, Thailand’s SET gained 25.05%, and Pakistan’s KSE 100 advanced 26.26% despite its monthly fall.
Singapore recorded a 22.98% annual gain, Malaysia 11.67%, and Indonesia 8.26%. In developed markets, the US Dow Jones rose 10.33% and the UK’s FTSE 100 gained 18.57%.
Amid equity market weakness, Bangladesh recorded the most significant macroeconomic shift in the region, a 16.10% year-on-year decline in inflation, the sharpest among all markets tracked.
This contrasts with rising inflation elsewhere: India (3.20%), Pakistan (7.00%), Indonesia (4.80%), and the United States (2.40%). Only Thailand reported a marginal decline of 0.90%.
The sharp disinflation may provide some relief to policymakers and investors despite ongoing market pressure.
Bangladesh’s GDP growth at current market prices stood at 11%, the second highest in the review after Taiwan’s 12.70% This outpaced India (7.80%), Singapore (6.90%), and Indonesia (5.40%).
Advanced economies lagged significantly, with the US growing at 2%, the UK at 1 percent, and Germany and Japan at just 0.40%.
However, Bangladesh’s 10-year government bond yield remained elevated at 10.32% among the highest in the region, behind only Pakistan’s 12.73%. Higher yields tend to divert funds from equities to fixed-income instruments, which may be weighing on the stock market.
India’s bond yield stood at 7.00%, Indonesia’s at 6.89%, while Taiwan and Singapore posted much lower yields at 1.54% and 2.89% respectively.
Capital market experts said the March data highlights a persistent disconnect between Bangladesh’s strong macroeconomic fundamentals and weak equity market performance.
Despite robust GDP growth and sharply declining inflation typically supportive of equities, the DSEX has posted a year-on-year decline, pointing to structural challenges such as high bond yields, shallow market depth, and limited institutional participation.
Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed said a sustained recovery in the DSEX will depend on reducing borrowing costs, maintaining the disinflation trend, and strengthening investor confidence.
He added that while March was difficult for investors, the easing inflation trend offers a positive signal that could help stabilise the market in the coming months.