Sunday, 5th April 2026
Khabor Wala Desk
Published: 17th May 2025, 5:26 PM
The state of Bangladesh’s stock market has remained disappointing this year, continuing a downward trend observed over the past three years. Despite a brief surge following the recent political shift, the market’s momentum quickly dissipated. In the past nine months, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) has shed 1,235 points, while daily transaction volumes have plummeted to around BDT 300 crore. Analysts attribute this sustained downturn to a lack of investor confidence in the current interim government.
Market Performance at a Glance
| Date | DSEX Index Level | Change | Remarks |
|---|---|---|---|
| Post-Awami League Government | 5,426 | – | Initial recovery post-political shift |
| Under Interim Government | 6,016 | +590 | Brief surge after government change |
| Latest (17th May) | 4,781 | -1,235 | Sharp decline despite government intervention |
Key Concerns and Market Challenges
Market experts have identified several critical issues that have eroded investor confidence:
Structural Weakness
Years of market manipulation and regulatory lapses have weakened the foundation of the stock market.
Investors expected significant structural reforms under the interim government, but no visible changes have materialised.
Regulatory Conflicts
Disputes among regulatory officials have further undermined investor confidence.
The lack of a unified regulatory approach has added to market instability.
Declining Corporate Earnings
Earnings and profitability of listed companies are falling, further depressing investor sentiment.
No new companies have been listed recently, adding to the market’s stagnation.
Reduced Foreign Investment
Foreign investment in the stock market has also declined, reflecting broader economic concerns.
Local investors, already hesitant, have seen little reason for optimism.
Latest Market Movement (17th May)
| Index | Closing Level | % Change | Lowest in |
|---|---|---|---|
| DSEX | 4,781 | -1% | Nearly 5 years |
| DS-30 | 1,770 | -1% | – |
| DSES (Shariah) | 1,039 | -1.4% | – |
The day’s major market movers included Islami Bank, Beacon Pharmaceuticals, British American Tobacco Bangladesh (BATBC), United Commercial Bank, and Jamuna Bank, all of which posted significant losses.
Transaction Summary
Total value traded: BDT 297 crore (down from BDT 294 crore the previous day)
Total securities traded: 395
Price gainers: 42
Price losers: 317
Unchanged: 36
Sector-Wise Trading Breakdown
| Sector | Market Share (%) | Position |
|---|---|---|
| Banking | 17.6% | 1st |
| Pharmaceuticals and Chemicals | 14.6% | 2nd |
| Food and Allied | 11.7% | 3rd |
| Mutual Funds | 8.6% | 4th |
| Fuel and Power | 7.6% | 5th |
Industry Voices
Saiful Islam, President of the DSE Brokers Association of Bangladesh (DBA), commented on the ongoing crisis:
“Currently, the volume of sell orders in the stock market significantly exceeds the buy orders, leading to a persistent decline in both the index and overall trading volumes. Despite some attempts at reform, the core issues of the market remain unaddressed, leaving investors uncertain about the future.”
Despite recent directives from the interim government’s Chief Adviser to address market weaknesses, the stock market continues to struggle. Analysts emphasise the need for comprehensive reforms, including stronger regulatory oversight, enhanced corporate governance, and greater investor protection, to restore confidence and ensure long-term market stability.
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