The Dhaka Stock Exchange (DSE) witnessed a massive rout over the past week as geopolitical tensions flared in the Middle East following joint military strikes by the United States and Israel on Iran. The escalating conflict triggered a wave of panic-selling, wiping out over Tk 20,413 crore in market capitalization and sending all major indices into a tailspin.
Market data reveals a grim landscape: for every company that managed to gain value, more than five others saw their share prices tumble. Out of the 392 issues traded throughout the week, only 59 advanced, while a staggering 325 declined and 8 remained unchanged. This means the number of losers was 5.51 times higher than the number of gainers.
Massive Erosion in Market Value
The total market capitalization of the DSE stood at Tk 6,97,951 crore by the end of the final trading session of the week. This represents a 2.84% drop from the previous week’s closing of Tk 7,18,364 crore.
Indices in Freefall
The benchmark index and sectoral indicators all posted significant losses, reversing gains made in the preceding week:
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DSEX (Broad Index): Plunged by 359.43 points (6.42%), a sharp contrast to the 134-point gain recorded the week prior.
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DSE-30 (Blue-chip Index): Dropped by 157.95 points (7.28%), reflecting heavy selling pressure on high-cap, fundamentally strong companies.
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DSES (Shariah Index): Shed 67.47 points (6.04%), closing a week of consistent decline for Shariah-compliant firms.
Liquidity Dries Up
Investor caution was evident not just in price movements but also in participation. The average daily turnover fell to Tk 696.49 crore, down 3.91% from the previous week’s average of Tk 724.86 crore.
Despite the general gloom, Orion Infusion Ltd. emerged as the week’s most traded stock. The company saw an average daily turnover of Tk 41.66 crore, accounting for nearly 6% of the total market liquidity.
Global Tensions Hit Home
Market analysts attribute the slump directly to the international instability caused by the strikes on Iran. With global oil supply routes like the Strait of Hormuz facing potential disruption, investors in Bangladesh—a country heavily dependent on energy imports—are bracing for inflationary pressures and increased import costs.
“The psychological impact of a potential regional war has led many retail and institutional investors to move their capital into safer havens, leading to a liquidity crunch and a rapid decline in index values,” noted one market observer.
