Shares on the Dhaka Stock Exchange (DSE) declined to a one-month low on Monday amid subdued investor interest, with turnover falling sharply as market participants grappled with concerns over rising business costs, corporate earnings uncertainty, and geopolitical instability.
The overall market turnover dropped 20 percent from the previous session to Tk 4.53 billion, marking the lowest level of trading activity since mid-September. The benchmark DSEX index closed at 5,404, down 46 points or 0.85 percent, continuing a downward trend that has erased 71 points over the past two sessions. Selling pressure was broad-based, and the index remained in negative territory throughout the trading day.
Market observers pointed to several factors behind the cautious investor stance. The ongoing earnings season has increased scrutiny on corporate financial results for the fiscal year ending June 2026, stirring uncertainty about future profitability amid rising operating expenses. The recent hike in fuel prices, in particular, has raised concerns about the impact on companies with energy-intensive operations or limited ability to pass higher costs to consumers.
Md Akramul Alam, head of research at Royal Capital, highlighted the effect of increased transportation, production, and distribution costs on profit margins, noting that investor selectivity is likely to persist until corporate earnings and economic indicators provide clearer direction.
At the same time, escalating geopolitical tensions in the Middle East have added to market unease. A recent series of attacks on Saudi airports that resulted in 12 fatalities, including two Bangladeshis, led Biman Bangladesh Airlines to suspend its Dhaka-Riyadh flights. The developments have raised concerns about rising global energy prices and potential repercussions for Bangladesh’s economy, particularly given the significant number of Bangladeshi workers and pilgrims traveling to the kingdom.
EBL Securities, in its market commentary, cited ongoing investor anxiety over disappointing corporate earnings and domestic challenges combined with geopolitical risks as factors undermining confidence and reinforcing risk-averse sentiment. The sharp decline in turnover and widespread price losses reflect a reluctance among investors to establish new positions amid uncertainty.
Sectoral performance mirrored the overall market downturn, with all sectors closing in negative territory. Non-bank financial institutions experienced the steepest decline, down 3.6 percent, followed by engineering, food, pharmaceuticals, telecommunications, and banking sectors. The D350 index of blue-chip stocks decreased by 9 points to 2,094, while the Shariah-compliant DSES index fell 10 points to 1,070.
On the stock-specific front, shares of Islami Bank Bangladesh, BAT Bangladesh, Bangladesh Steel Re-Rolling Mills, Walton, and Al-Arafah Islami Bank were among those contributing most to the benchmark’s loss. Market breadth was dominated by declines, with 303 issues losing value versus 47 that advanced and 35 remaining unchanged. Evince Textile led trading volume with shares worth Tk 171 million changing hands, followed by BEXIMCO, Sonali Aansh Industries, Saiham Textile, and Paramount Textile.
The Chittagong Stock Exchange also registered losses, with its All Share Price Index (CASPI) dropping 84 points to 14,551 and the Selective Categories Index (CSCX) falling 53 points to 8,946, reflecting a broader trend of investor caution across Bangladesh’s equity markets.