DSE sheds 149 points amid sector-wide decline

The Dhaka Stock Exchange (DSE) has suffered a massive slide as the indices fell sharply, by 149 points in a single day, following a broad-based drop in share prices across all sectors.

On Wednesday, the benchmark DSEX index fell nearly 3 percent, closing at 4,802 points. Both other key indices also finished lower.

Despite the sharp downturn, daily turnover remained relatively strong at Tk 5.16 billion.

The market began falling within the first 30 minutes of trade and continued its slide through to the closing bell.

The last time the DSE suffered a 149-point drop in a single day was on Oct 27, 2024, when the day’s turnover had dropped to Tk 3.03 billion.

That slump was deemed “abnormal” by the Bangladesh Securities and Exchange Commission (BSEC), which had then formed a four-strong investigation committee to look into the matter.

The report from that probe is yet to be made public.

In response to the Wednesday’s plunge, BSEC spokesperson Abul Kalam gave a routine comment to bdnews24.com: “The BSEC will look into the matter. The Surveillance Department continuously monitors trading.

“If anything unusual is found, action will be taken.”

Since Mominul Islam took over as DSE chairman on Oct 3, 2024, the bourse has witnessed two major selloffs within a span of seven months.

Multiple attempts to reach him for comment were unsuccessful.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), alleged that a certain group was attempting to profit by triggering panic selling.

“A panic has been created by dragging in the India-Pakistan conflict,” he said. “Rumours have been spread by many. The war is in another country, but some tried to take advantage here.

“A group got the chance to buy shares at lower prices after the drop.”

The DBA chief also pointed to an inconsistency: turnover typically drops during steep declines, yet Wednesday's trading remained active. “That’s also a signal,” he said.

Analysis of trading data showed total turnover reached Tk 5.16 billion, compared with Tk 5.49 billion the previous day, which had been the highest in the last two and a half months.

The banking sector accounted for 22.58 percent of the day’s total turnover, with Tk 1.13 billion worth of shares traded—well above the usual Tk 600-800 million.

The sector had seen Tk 1.38 billion in trades the previous day, crossing the Tk 1 billion mark for two consecutive sessions.

The food and allied sector recorded the second-highest turnover at Tk 633.3 million, followed by power and energy at Tk 578.3 million.

Of the 394 issues traded, 385 lost value. Only nine advanced while five remained unchanged.

The day’s top gainers, based on closing prices, were Bashundhara Paper Mills, Midland Bank and NRB Bank.

On the losing end were Prime Textile, Beach Hatchery and MIDAS Financing.