Stocks extended their losing streak for the third consecutive session on Tuesday, as ongoing global geopolitical tensions continued to weigh heavily on investor sentiment.
The benchmark index of the Dhaka Stock Exchange (DSE), DSEX, fell by 52 points, or 1 per cent, to close at 5,178. Over the past month, the index has plunged by 422 points following the outbreak of the Middle East war, reflecting persistent market anxiety.
Market analysts said equities have faced significant pressure since the Iran-Israel war began on February 28, prompting jittery investors to offload holdings amid fears of further erosion in asset values.
The escalating conflict has sent shockwaves across global markets, impacting economies far beyond the immediate region. Bangladesh, heavily reliant on Middle Eastern energy imports, remains particularly vulnerable to the fallout.
Analysts attributed the market downturn largely to concerns over potential energy shortages and rising inflationary pressures stemming from the crisis.
"Investors remained cautious due to ongoing developments surrounding the Middle East war," said Akramul Alam, Head of Research at Royal Capital.
Most preferred to stay on the sidelines, closely monitoring the situation in the absence of clear signs of de-escalation, he added.
Debapriya Bhattacharya, distinguished fellow at the
Centre for Policy Dialogue (CPD), warned at a seminar on Tuesday that the evolving fuel crisis is exacerbating macroeconomic vulnerabilities and exposing structural policy weaknesses.
He noted that rising fuel prices could increase Bangladesh's annual energy import costs by approximately $4.8 billion-equivalent to 1.1 per cent of GDP-potentially widening the current account deficit.
Higher import bills are also driving up demand for foreign currency, putting additional pressure on foreign exchange reserves, he added.
Furthermore, prolonged instability in the Gulf region could disrupt remittance inflows, which account for nearly half of total remittances and serve as a key stabiliser of the country's balance of payments.
Among other indices, the DS30-comprising 30 leading companies-declined by 19 points to 1,960, while the DSES index, which tracks Shariah-compliant firms, fell 8 points to 1,053.
EBL Securities noted that the ongoing Middle East crisis triggered a broad-based sell-off across sectors, further dampening investor confidence.
The price fall of blue-chip stocks played a significant role in dragging the market lower. Major contributors included BRAC Bank, Pubali Bank, Square Pharmaceuticals, City Bank, and BAT Bangladesh, which collectively contributed to a 16-point decline in the DSEX.
BRAC Bank alone accounted for a 5-point drop after its share price fell by 1.8 per cent, followed by Pubali Bank, which contributed a 4-point decline.
Trading activity showed a modest uptick, as total turnover rose 3 per cent to Tk 6.85 billion over the previous day. The pharmaceutical sector led turnover with a 15.6 per cent share, followed by the engineering and banking sectors.
Market breadth remained negative, with losers significantly outnumbering gainers. Of the 388 issues traded on the DSE, 278 declined, 77 advanced, and 33 remained unchanged.
The Chittagong Stock Exchange (CSE) also witnessed a sharp decline. Its All Share Price Index (CASPI) fell by 205 points to 14,578, while the Selective Categories Index (CSCX) dropped 118 points to 8,903.
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