Dhaka stocks resume post-Eid with 68-point slide as energy crisis bites

Market participation has remained cautious despite a slight increase in turnover

The Dhaka Stock Exchange (DSE) has returned from a week-long Eid-ul-Fitr break on a somber note, with the benchmark index sliding 68 points on the first trading day of the week.

The market opened with a downward trend on Tuesday morning.

Although there was a brief attempt at recovery around 11:30am, the momentum faded within an hour, dragging the prime index back into the red.

The DSE Broad Index (DSEX) ended the day significantly lower than its pre-Eid close of 5,353 points. Market participation remained cautious, though turnover saw a slight uptick.

On a day when the market saw 243 issues decline against 121 advancers and 27 remaining unchanged, turnover rose to Tk 4.92 billion, up from Tk 4.60 billion in the previous session.

Market analysts attributed the slump to broader macroeconomic anxieties, particularly the ongoing fuel shortage affecting the country.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), told bdnews24.com that the impact of the fuel crisis on the capital market was inevitable.

"The oil shortage has become a national crisis, and it is natural for that to reflect in the stock market. With the index having dropped this much, the scope for further correction is limited. We hope the market will stabilise soon," he said.

The banking sector dominated the day's turnover, followed closely by pharmaceuticals and engineering.

The banking sector led the day's turnover with Tk 713 million, followed by pharmaceuticals and chemicals at Tk 605 million, and the engineering sector in third place with Tk 566 million.