Investors plagued by confidence crisis as stock market continues downturn
Graphics: Agamir Somoy
The relentless slide in Bangladesh's stock market shows no sign of cessation. As share prices and mutual fund valuations for the majority of companies continue to drop sessions after sessions, investors' anxiety is mounting rapidly. Also, a lack of desired trading volume has fueled a severe crisis of confidence across the market.
On Sunday, the first trading day of the week, both the primary exchange—the Dhaka Stock Exchange (DSE)—and the Chittagong Stock Exchange (CSE) recorded price drops for most companies alongside index declines, though DSE turnover saw a slight uptick.
The session on the DSE began with a brief uptick driven by rising prices across most companies. However, sell-off pressure emerged shortly after and persisted through the closing bell. By the end of the day, out of all traded entities on the DSE, only 49 saw price gains, while 309 declined and 34 remained unchanged.
A category-wise breakdown of share performance highlights widespread losses. Among fundamental or high-performing companies paying 10% or more in dividends, only 26 posted gains while 163 declined. For mid-tier companies distributing under 10% dividends, 12 registered gains against 58 drops. Non-performing 'Z-category' companies—which pay no dividends—saw 11 advance while 89 lost value. Mutual funds fared similarly poorly, with only 1 gaining price and 29 experiencing declines.
Due to the broad-based sell-off, the DSE broad index (DSEX) shed 41 points to settle at 5,614 points. Among the other key indices, the DSE-30 index—comprising 30 select blue-chip companies—dropped 12 points to 2,122 points, while the DSE Shariah index slipped 4 points to 1,128 points. Despite the decline in indices, overall turnover on the DSE rose slightly to Tk 518.03 crore, up from Tk 467.01 crore in the previous session.
Sayham Textile topped the DSE turnover chart on Sunday, trading shares worth Tk26.75 crore. Sharp Industries ranked second with Tk 21.24 crore in turnover, followed by Sayham Cotton in third with Tk16.77 crore. Other heavily traded stocks included Paramount Textile, Summit Alliance Port, Lovello Ice Cream, Beximco, Malek Spinning, ML Dyeing, and IPDC Finance.
On the CSE, 174 entities were traded, with 42 advancing, 112 declining, and 20 remaining unchanged. Consequently, the CSE All-Share Price Index (CASPI) dropped by 75 points. The CSE registered a turnover of Tk11.01 crore, marking a significant drop from the Tk 21.23 crore recorded in the previous session.
The DSE has suffered multiple steep drops in recent days. Turnover plummeted to the Tk500-crore mark on August 25, following a prolonged five-day consecutive market crash up through August 18. Market analysts note that a deficit in investor confidence, liquidity crunches, and general market uncertainty have led investors to hold back on fresh capital and adopt a wait-and-see approach. As a result, heightened selling pressure continues to drive the market's ongoing downward trend.
