Bangladesh’s stock market experienced a significant downturn over the past week, as a prolonged gas and electricity crisis fueled investor anxiety and weakened confidence in listed companies’ earnings outlook.
During the week of September 6–10, the benchmark index of the Dhaka Stock Exchange (DSE), the DSEX, fell by 147 points, or 2.59 percent, to close at 5,515 — its lowest level in three months. Market data showed that the index declined on four out of পাঁচ trading days, reflecting sustained selling pressure.
Analysts attribute the fall largely to disruptions in industrial production caused by ongoing energy shortages. Many factories have reportedly scaled down operations or temporarily shut down due to inadequate gas and electricity supply. Others have been forced to rely on more expensive alternative energy sources, increasing production costs and squeezing profit margins.
“Due to the energy crisis, many factories are reducing output or even halting operations. At the same time, the use of alternative energy is raising costs,” said the chief executive officer of a leading brokerage firm. “This has created uncertainty among investors regarding the future earnings of listed companies.”
The growing concern prompted investors to reduce exposure to equities, leading to intensified selling pressure. Weak demand, broader economic uncertainty, and short-term portfolio adjustments further accelerated the market decline.
The downturn was particularly sharp at the beginning of the week. On Sunday (September 6), the DSEX plunged by more than 100 points in a single session. Market intermediaries cited panic selling, concerns over market interventions, and macroeconomic uncertainty as key triggers behind the steep fall.
In response to the volatility, officials from the DSE and the DSE Brokers Association of Bangladesh (DBA) held an emergency meeting on Tuesday to assess the situation and discuss possible measures to stabilize the market.
DBA President Saiful Islam said that brokerage houses and other market participants are currently facing multiple challenges. “All stakeholders, including the exchange and regulators, must work in a coordinated manner to restore investor confidence and ensure normal market functioning,” he said.
A weekly market review by EBL Securities echoed similar concerns, noting that the energy crisis, weak earnings expectations, and cautious investor sentiment continued to exert downward pressure on the market. Although some investors attempted to buy shares at lower prices, overall uncertainty outweighed buying interest.
However, mutual funds emerged as an exception, attracting relatively stronger demand during the week. Analysts said some investors shifted to mutual funds in search of short-term gains amid the broader market weakness.
Other key indices also declined. The blue-chip DS30 index dropped by 45 points to 2,095, while the Shariah-based DSES index fell by 33 points to 1,105.
Large-cap stocks played a significant role in dragging down the DSEX. Shares of major companies including Square Pharmaceuticals, Al-Arafah Islami Bank, British American Tobacco Bangladesh, LafargeHolcim Bangladesh, and Eastern Bank collectively contributed more than 25 negative points to the index.
Market turnover also slowed. Total weekly transactions on the DSE stood at Tk 2,771 crore, down from Tk 3,044 crore in the previous week. The average daily turnover declined প্রায় ৯ percent to Tk 554 crore.
Sector-wise, the textile sector accounted for the largest share of total turnover at 29.5 percent, followed by general insurance (14.2 percent) and pharmaceuticals and chemicals (10.4 percent).
Overall market breadth remained negative. Prices of 310 listed securities declined במהלך the week, while only 60 advanced and 16 remained unchanged. Nearly all sectors recorded losses, with the exception of mutual funds, which gained 3.7 percent. Non-bank financial institutions (NBFIs) saw the steepest sectoral drop of around 4 percent, followed by declines in engineering, power and energy, pharmaceuticals, telecommunications, and banking sectors.
Among individual stocks, Sharp Industries led turnover with shares worth Tk 117 crore traded במהלך the week, followed by Envoy Textiles, Malek Spinning Mills, Saiham Cotton Mills, and Saiham Textile.
The bearish trend was not limited to Dhaka. The Chittagong Stock Exchange (CSE) also witnessed a sharp fall. The CASPI index dropped by 306 points to 14,866, while the CSCX index declined by 191 points to 9,073.
Market observers warn that unless the energy supply situation improves and macroeconomic stability is restored, investor sentiment may remain fragile in the near term.
