Bangladesh’s stock market saw a sharp fall on Wednesday, with the DSEX index dropping over 150 points—more than 3%—as geopolitical tensions between India and Pakistan triggered widespread investor panic.
In one of the steepest single-day declines in recent months, the Dhaka Stock Exchange’s (DSE) benchmark DSEX index sank by 150 points, closing at 4,802—its lowest in over four and a half years. Analysts attribute the plunge to rising fears of a full-scale conflict between neighboring nuclear powers India and Pakistan.
The market opened under intense selling pressure, with the DSEX shedding nearly 100 points within the first 30 minutes of trading. Despite a brief mid-session rebound, the index continued its downward trajectory during the final hour, ending the day with significant losses across all sectors.
A staggering 96% of listed issues saw their share prices decline. Of the 399 traded securities, only 9 gained while 385 declined and 5 remained unchanged.
Among the indices, the Shariah index suffered the most, dropping 3.84% to settle at 1,047 points. The DS30 index also fell by 40 points, or 2.19%, reflecting a broad-based market decline.
“The India-Pakistan missile exchanges have created regional instability, pushing investors into panic selling,” said Moin Al Kashem, CEO of Prime Asset Management. He warned that market sentiment could further deteriorate if the geopolitical situation worsens.
A senior official at the Bangladesh Securities and Exchange Commission (BSEC), requesting anonymity, acknowledged that lower investor participation and a lack of buying interest contributed to the decline. “The market’s reaction has been amplified by fears of war, and even companies with low trading volumes have dragged down the index,” the official noted.
Trading volume also declined, with total turnover falling by BDT 330 million compared to Tuesday, settling at BDT 5.16 billion.
This drop pushes the DSEX to levels last seen on August 25, 2020, when the index stood at 4,781 points, signaling a deepening market crisis exacerbated by both global uncertainty and weak domestic investor confidence.
Meanwhile, reports of missile strikes in Azad Kashmir by India and retaliatory attacks by Pakistan have fueled speculation of a larger military escalation, casting a long shadow over regional economies and capital markets.
LND/BG
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