Bangladesh’s stock market experienced a significant downturn in the fiscal year 2024, with key indicators including price indices, market capitalization, and price-to-earnings (P/E) ratio all registering notable declines. The persistent lack of investor confidence has been identified as a major factor behind the continued bearish trend.
The benchmark index of the Dhaka Stock Exchange (DSE), DSEX, dropped by 1,030.06 points, or 16.49 percent, over the fiscal year. The index, which stood at 6,246.50 points at the beginning of the year, fell to 5,216.44 points by the end.
Other indices also followed a downward trajectory. The DSE 30 index declined by 7.36 percent to settle at 1,940 points, while the DSE Shariah index fell by 14.31 percent to 1,169 points.
Market capitalization also suffered a major setback during the period. Total market value declined by Tk 118,230 crore, or 15.14 percent, dropping from Tk 780,850 crore at the beginning of the fiscal year to Tk 662,620 crore at the end.
The price-to-earnings (P/E) ratio, a key indicator of market valuation, fell sharply to 9.50 from 13.12 over the year. This represents a decline of 3.62 points, or 27.59 percent, indicating reduced investor expectations and market confidence.
Despite the overall downturn, total turnover in the market showed a modest increase. Trading volume rose by 5.37 percent, reaching Tk 148,640 crore in FY2024, compared to Tk 141,060 crore in the previous year.
However, block transactions declined significantly. Block trade turnover dropped by 37.74 percent to Tk 9,252 crore in 2024, down from Tk 14,177 crore in 2023.
Market analysts suggest that the decline in key indicators reflects a prolonged confidence crisis among investors, overshadowing the slight increase in trading activity. Without restoring investor trust and ensuring market stability, the bearish trend may persist in the coming months.
