United News of Bangladesh

The past week has seen persistent declines in the stock market index, reduced trading volume, and internal conflicts within the regulatory body, all contributing to the ongoing instability. Over the last five trading days, despite a slight recovery in the final two sessions, the overall market trend remained negative. The Dhaka Stock Exchange’s (DSE) benchmark index, DSEX, fell by 43 points. Starting at 5,247 points on 2 March, the index dropped to 5,203 points by the closing session on March 6. Meanwhile, the blue-chip DS30 index shed 15 points, while the Shariah-based DSES index declined by 6 points over the week. The SME index experienced a severe downturn, falling below 1,000 points after a continuous decline. The DMMA index dropped from 1,017 points to 970 points, marking a 4.65% decrease from the previous week. Among the traded companies, most saw a decline in their share prices. Out of 289 companies that experienced a drop, only 86 recorded a price increase, while 20 remained unchanged. Trading volume in Dhaka's stock market fell by 28.79% in one week. Bangladesh’s stock market sees slight recovery after consecutive declines The daily average turnover, which had previously exceeded Tk 500 crore, plummeted to Tk 300 crore. Simultaneously, market capitalisation declined by 1.90%. Only three sectors—energy, paper, and leather—saw price increases throughout the week. In contrast, major sectors witnessed a significant downturn. The banking sector suffered a 27.61% decline in share prices, with trading volume decreasing by 31.91%. Out of 36 listed banks, 23 recorded a price drop, while only 4 banks witnessed an increase. The financial institutions sector faced an even worse situation, with a 29.49% drop in share prices and a 40.95% decline in trading volume. Among 23 listed financial institutions, 19 experienced a decline, 3 saw an increase, and 1 remained unchanged. The general and life insurance sectors witnessed massive sell-offs. Over five trading days, the general insurance sector saw a 43.23% decrease in share prices, while the life insurance sector faced a 59.16% drop. Top Performers and Market Trends Orion Infusion Limited recorded the highest turnover in Dhaka’s stock market, averaging Tk 21.46 crore in daily transactions. Prime Bank secured the second position, while Beach Hatchery Limited ranked third. In the block market, transactions worth Tk 114.70 crore took place. Prime Bank led with Tk 40 crore in transactions, followed by Beach Hatchery with Tk 18.80 crore. Progressive Life Insurance topped the gainers' list, with its share price increasing by 17.74%. On the other hand, S Alam Cold Rolled Steels Limited suffered the most, with a 14.83% decline. Chittagong Stock Market Also Struggles Similar to Dhaka, Chittagong’s stock market witnessed a declining trend. The overall index started at 14,633 points and fell to 14,502 points by the end of the trading week. Among 329 traded companies, 215 saw price declines, while 29 remained unchanged. Only 85 companies recorded price gains. Dhaka, Chattogram stock markets slump as indices, turnover decline Tasrifa Industries Limited topped the decliners’ list, losing 17.5% in share value over the week. After performing well in February, S Alam Cold Rolled Steels Limited saw a price drop of nearly 17%. Indo-Bangla Pharmaceuticals Limited led the gainers, with its share price rising by 16.98%. National Tea Company Limited, a Z-category firm, saw a 16.58% increase. The most traded stock in Chittagong was Robi, a leading telecom company. Regulatory Turmoil in BSEC In addition to the stock market downturn, the Bangladesh Securities and Exchange Commission (BSEC) faced unprecedented internal unrest. Since joining in August 2024, current Chairman Rashed Maksud has been under fire due to continuous market declines, drawing criticism from general investors. Investors and brokerage officials have frequently voiced concerns in the media, stating that the commission’s reform measures, which ignore market sentiment, could further worsen conditions. During the market downturn, general investors demanded Maksud’s resignation, staging protests in Motijheel and even locking the commission’s main gate. Electronic VAT machines made mandatory at highway restaurants to halt cheating: NBR The crisis deepened as BSEC employees turned against Maksud, demanding his resignation. On 5 March, officials and employees of the commission confined the chairman and other commissioners in protest. Security forces later intervened to release them. However, Maksud made it clear that he would not step down. Protesters have warned of an indefinite strike if Maksud does not resign. If the situation remains unresolved, operational paralysis at BSEC is expected from 9 March. A director of DSE, speaking anonymously, stated, “For the past 15 years, BSEC has been operating arbitrarily. These unilateral actions have frustrated stakeholders. Now, internal discontent within the commission itself is sending a negative signal to the market.” Market analysts warn that unless the regulatory crisis is swiftly addressed and the stock market reform task force’s recommendations are gradually implemented, Bangladesh’s stock market may face prolonged instability.

The stock market began the first trading day of the week with a downward trend as both the Dhaka and Chittagong stock exchanges witnessed a decrease in indices and trading volumes, with the majority of companies seeing price drops on Sunday. The Dhaka Stock Exchange’s (DSE) key index, DSEX, fell by 13 points. The other two indices, the Shariah-based DSES, and the blue-chip index, both saw reductions of 4 points and 1 point, respectively. The Chittagong Stock Exchange (CSE) also reported a decline in its overall index, which dropped by 38 points by the close of trading. Out of the 395 companies traded on the DSE, the share prices of 240 companies decreased, 92 saw an increase, and 63 remained unchanged. BB to announce contractionary monetary policy on Monday On the CSE, shares of 177 companies were traded, with 82 companies experiencing price declines, 67 seeing price increases, and 28 remaining unchanged. Overall, both markets recorded a decrease in total trading volume. On the DSE, the total trading value amounted to 374 crore Tk, down from 429 crore Tk on the previous trading day. Similarly, on the CSE, the total trading value was 5.3 crore Tk, which is a reduction of 4 crore Tk from the previous day. Among the shares traded on the DSE, Power Grid Company of Bangladesh saw the highest price increase, with its shares rising by 10%. On the CSE, Islamic Finance and Investment PLC topped the list with a 10% increase in share price. Conversely, on the DSE, the notable company that saw the biggest decline was Khulna Printing and Packaging Limited. After consistent price rises, the company’s shares fell by 7.43%. On the CSE, Confidence Cement PLC recorded a 9.81% drop in share price, placing it at the bottom of the list. Trading Begins with an Uptrend as Most Company Shares Gain Meanwhile, the SME sector, which faced a significant downturn last week, began this week on a positive note. The DSE SME Index (DSMEX) rose by 16 points on the first day of trading. Among the 19 companies traded, 11 saw their share prices increase, 7 saw a decline, and 1 remained unchanged.