In Bangladesh, the Dhaka Stock Exchange (DSE), Bangladesh’s primary capital market, experienced a fourth consecutive day of decline in trading on Monday amidst political uncertainties. On Sunday, DSE tumbled below 5,000 points after four years with high selling pressure weighing on the indices and an increase in the policy rate designed to tame soaring inflation.
On Sunday, stocks experienced the biggest single-day fall in 43 months, prompting some investors to take to the streets in protest. DSEX, the benchmark index of the DSE, dropped by 149 points and closed at 4,965.
Meanwhile on Monday, Stock market investors have formed a human chain in front of the Dhaka Stock Exchange (DSE) building in Dhaka’s Motijheel amid continuous fall.
“The overall macroeconomic situation and policy rate hikes are not in favour of the stock market,” said Faruq Ahmad Siddiqi, former chairman of the Bangladesh Securities and Exchange Commission (BSEC).
According to the experts, the growing deposit rates are prompting savers to move away funds to the money market from the stock market. Persistent price erosion of stocks also led to a mounting sell pressure from margin accounts, exacerbating the fall of the index.
Against this backdrop, the BSEC formed a four-member committee on Sunday to investigate the sharp index fall and submit a report within 10 working days.
By Navalsang Parmar (Dhaka)