The stock markets of Dhaka and Chattogram suffered a significant setback this past week, with all major indicators, transaction volumes and the majority of share prices experiencing considerable declines.
A review of the Dhaka Stock Exchange (DSE) weekly report reveals that the benchmark index, DSEX, dropped by 108 points over the four trading sessions.
Starting the week at 5,205 points, the index ended at 5,097, marking a fall of over 2 per cent.
Other indices also saw marked drops.
The Shariah-based DSES index shed 29 points, losing nearly 2.5 per cent of its value. Even the blue-chip DS30 index, which tracks performance of well-established companies, declined by 52 points or 2.72 per cent, leaving investors in high-performing stocks in a grim situation.
The SME index also mirrored the negative trend, falling by 4.15 per cent. The DSMEX lost 40 points over the week, underlining the overall distress in the capital market.
Turnover, too, took a hit. The average daily turnover dropped to Tk 399 crore from the previous week’s Tk 487 crore—an 18.11 per cent fall. Investor participation waned, leading to a sharp reduction in share transfers. From Tk 98 crore in the second week of April, the total value of traded shares and units fell to Tk 57 crore in the third week.
Only 77 companies recorded gains during the week, while 299 lost value and 20 remained unchanged.
Only two sectors—corporate bonds and general insurance—posted positive returns. All other sectors continued to struggle, with mutual funds and ceramics seeing more than 6 per cent drop in returns.
Despite a marginal overall gain in the banking sector, individual bank stocks performed poorly. Of the 36 banks involved in trading, 24 witnessed price drops.
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The non-bank financial institutions sector performed dismally, with a 41 per cent drop in share prices and 31 per cent fall in turnover.
Out of 23 listed financial institutions, only one recorded a price increase, 17 declined, and 5 remained unchanged.
While the general insurance sector saw an 85 per cent gain in share prices, life insurance faced a setback with over 50 per cent decline. The telecom and IT sectors declined by 32 per cent and 38 per cent respectively. The engineering sector also underperformed, losing 16 per cent in value.
In the block market, the top sellers were Marico, Beach Hatchery, and ACI Ltd. Marico offloaded shares worth Tk 25.2 crore, Beach Hatchery Tk 25.1 crore, and ACI Tk 20.68 crore.
Among the week's top-performing shares was Desh General Insurance Company Ltd. A B-category company, it posted a return of over 24 per cent in just four trading sessions—its share price climbing from Tk 25 to Tk 31.
In contrast, Bangladesh Finance was the worst performer, losing over 15 per cent. The A-category company’s share dropped from Tk 12 to Tk 10.
Chattogram Market Equally Strained
The Chattogram Stock Exchange (CSE) experienced a similar downturn. Its benchmark index fell by 250 points over the week. Excluding Z-category (non-dividend paying) companies, the selective CSCX index declined by 149 points.
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The CSE-50 benchmark index slipped by 17 points, while the Shariah-based CSI index dropped 21 points. The SME index fell by 4.57 per cent.
Among 301 companies that traded throughout the week in CSE, prices rose for only 65, fell for 218, and remained unchanged for 18.
Anwar Galvanizing Ltd topped the weekly gainers’ list in CSE, with its share price increasing by Tk 28—from Tk 68 to Tk 87. Meanwhile, Shamarita Hospital saw the steepest fall, losing Tk 20 per share. Orion Infusion recorded the highest turnover in the CSE with Tk 7.6 crore in total trades.
Investor Confidence Falters
Ongoing price falls have left investors demoralised. Many are closing their Beneficiary Owner (BO) accounts and exiting the market altogether.
According to Central Depository Bangladesh Ltd (CDBL), the number of BO accounts with zero balance rose from 3,69,210 before the Eid holidays to 3,73,367 by the end of the latest trading session—a net exit of 4,157 investors in just a few days.
Tareq Hossain, a retail investor, said, “No visible reforms have taken place in the market so far. There’s no progress in penalising or trying those involved in manipulation. Investors are gradually losing interest.”
Another investor, Habibur Rahman, added, “None of our demands have been met. Despite repeated discussions, the buy-back policy hasn’t been implemented. Those who lost everything through margin loans have also been ignored.”
Faridur Rahman pointed out the cascading effect of margin loans: “When junk stocks fall, investors are forced to sell off quality stocks to cover their losses—dragging even good stocks down.”
Where Are the IPOs?
Another major concern is the lack of quality IPOs. Several reputed companies were expected to go public this year, but those plans have not materialised.
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A senior official from the Bangladesh Securities and Exchange Commission (BSEC), requesting anonymity, confirmed that no new IPOs are expected this year. “Good companies are not confident enough to enter the market,” he said.
He explained that BSEC is in the process of overhauling IPO listing rules. “The revised IPO guidelines may not be gazetted until September. After that, it may take another 5–6 months for new listings, meaning we may not see fresh IPOs before March or April 2026.”
In response to queries about the current commission's inability to attract strong listings, the official noted that many previously well-performing firms have undergone management changes due to political shifts. Moreover, higher interest rates on bank loans have cut into company profits, discouraging them from seeking public capital.
He concluded that substantial tax incentives are needed to attract large corporations to the market. “Offering meaningful benefits could encourage top firms to list, which would, in turn, revitalise the stock market.”