The Bangladesh stock market experienced a significant downturn in the trading week from November 30 to December 4, with both indices and turnover registering sharp declines. The primary stock exchange, the Dhaka Stock Exchange (DSE), saw its main index, DSEX, drop by 2.82%, while the average daily transaction volume fell by nearly 22%.
The DSE’s weekly update report confirmed that all sectors in the capital market recorded negative returns during the period.
Major Index Declines
An analysis of the market showed a broad-based decline across key indices:
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The DSEX index closed the week at 4,887 points, a drop of 141.57 points from the previous week’s closing of 5,028 points.
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The selective companies index, DS-30, fell by 42.48 points to 1,892 points (down from 1,934 points).
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The DSE’s Shariah index, DSES, decreased by 32 points to 1,025 points (down from 1,057 points).
Out of the 383 companies, mutual funds, and corporate bonds traded on the DSE, prices rose for only 45, declined for 325, and remained unchanged for 13. Trading did not take place for 29 entities.
The largest contributors to the week’s index slump included shares of Islami Bank, Square Pharmaceuticals, LafargeHolcim Bangladesh, Walton Hi-Tech Industries, and Padma Oil.
Sharp Fall in Transaction Volume
The average daily transaction volume on the DSE during the five working days of the past week was Tk 411.46 crore, a significant reduction from the Tk 525.11 crore recorded in the preceding week. This represents a 21.64% decrease in the average daily turnover.
Market analysts attribute the overall bearish trend to rising investor apprehension stemming from ongoing political uncertainty and the current process of restructuring the financial sector in the country.
Sectoral Performance and Turnover Domination
Despite the overall market slump, the Textile sector dominated in terms of transaction share.
| Sector | Share of Total DSE Turnover | Performance (Weekly Return) |
| Textile | 14.60% (Highest) | Negative |
| Engineering | 13.38% | Negative |
| Pharmaceuticals & Chemicals | 11.03% | Negative |
| Food & Allied | 10.48% | Negative |
| Fuel & Power | 9.56% | Negative |
All sectors recorded negative returns for the week, with the Services and Real Estate sector experiencing the steepest fall at 11.88%. Other significant negative returns were seen in Financial Institutions (7%), Life Insurance (6.14%), Paper and Printing (5.70%), and Information Technology (5.54%).
Chittagong Stock Exchange Also Declines
The second major stock market, the Chittagong Stock Exchange (CSE), mirrored the DSE’s performance.
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The CASPI (All Share Price Index) dropped by 2.07%, closing at 13,747 points (down from 14,037 points).
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The CSCX index fell by 1.96%, settling at 8,473 points (down from 8,642 points).
The total turnover on the CSE for the week was Tk 57.74 crore, a sharp decline from Tk 110.93 crore the previous week. Out of the 286 traded securities, 200 declined, 69 gained, and 17 remained unchanged.
