Stocks plunge amid war, energy tensions

Bangladesh’s stock market fell to a nearly two-and-a-half-month low yesterday, with the benchmark index dropping more than 2 percent amid rising concerns over global energy prices following escalating tensions in the Middle East.

The DSEX, the prime index of the Dhaka Stock Exchange, declined by 107.46 points, or 2.06 percent, to close at 5,112.27. The index last hovered near this level on January 26.

Market participants attributed the downturn to growing uncertainty surrounding the conflict involving the United States, Israel and Iran, which has heightened fears of prolonged energy price volatility.

“As tensions escalated over the weekend, investors became concerned that energy prices could rise further or remain elevated for a longer period,” said Asif Khan, chairman of EDGE AMC (Asset Management Company) Limited.

The other two indices on the DSE also declined.

The shariah-based DSES fell 18.47 points, or 1.74 percent, to 1,041.10, while the blue-chip DS30 index dropped 35.02 points, or 1.77 percent, to 1,945.34.

Turnover stood at Tk 512 crore, down 18.21 percent from the previous trading session. The pharmaceuticals sector dominated trading, accounting for 17.1 percent of total turnover.

Block market transactions amounted to Tk 17.51 crore, representing 3.4 percent of the day’s turnover.

Among the major turnover leaders, Asiatic Laboratories Limited fell 4.52 percent, followed by ACME Pesticides Limited (3.81 percent), Summit Alliance Port Limited (0.99 percent), and Dominage Steel Building System Limited (1.35 percent).

Out of the traded issues, only 25 advanced, while 354 declined and the rest remained unchanged.

According to a daily market update by Shanta Securities, the downturn was driven by negative movements in travel and leisure, banking, and paper and printing stocks, despite gains in debentures, information technology and miscellaneous sectors.

No sector ended in positive territory, with mutual funds, ceramics and jute among the worst performers, said UCB Stock Brokerage Limited.

At the Chittagong Stock Exchange, the CASPI index also declined, shedding 228.40 points, or 1.55 percent, to close at 14,473.09.