Price Decline in Large-Cap Stocks Drives Market Down

Dhaka, 16 April 2025 (BSS) – Both of the country’s major stock exchanges, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), saw a decline today, primarily due to a fall in the prices of large-cap securities.

The DSEX, the broad index of the Dhaka Stock Exchange, dropped by 26.3 points, reaching a four-month low of 5,106 points, compared to 5,132 points in the previous trading session.

Market analysts noted that the market largely remained sell-dominant, with cautious investors adopting a wait-and-see approach to assess the market’s trend. The analysts highlighted that persistent uncertainties surrounding several factors, including the potential impact of US tariffs, ongoing negotiations with the International Monetary Fund (IMF) over remaining loan tranches, expected tax hikes in the pre-budget discussions, and the recent fuel price increase, continue to weigh heavily on market sentiment. These factors have contributed to a prolonged downward trend, pulling most stocks into negative territory for consecutive sessions.

Meanwhile, market turnover fell by 11.1%, standing at Taka 4.0 billion, down from Taka 4.5 billion in the previous session.

In terms of sector performance, the pharmaceutical sector (15.9%) saw the highest turnover, followed by the food sector (9.8%) and the banking sector (8.9%). However, the majority of sectors posted disappointing returns, with mutual funds (-2.6%), services (-2.0%), and cement (-1.4%) sectors seeing the most significant corrections. On the other hand, the general insurance (0.9%), textile (0.6%), and fuel (0.6%) sectors showed marginal positive returns.

Out of the 397 issues traded, 119 advanced, 210 declined, and 68 remained unchanged.

The port city’s bourse, CSE, also ended the day in the red. The Selective Categories’ Index (CSCX) dropped by 26.3 points, and the All Share Price Index (CASPI) fell by 48.0 points.

This downtrend reflects continued investor caution, with uncertainty around global and domestic economic conditions continuing to affect market stability.