Zakir Hossain / Dhaka
Dhaka stocks nosedived on Wednesday, marking the second straight session of losses, as rising India-Pakistan tensions triggered widespread panic and sell-offs among retail investors.
The DSEX, the benchmark index of the Dhaka Stock Exchange, fell 3.01 percent or 149.30 points to close at 4,802.41. The Shariah-based DSES index dropped 3.84 percent to 1,047.98, while the DS30, comprising blue-chip stocks, declined 2.19 percent to 1,793.42. Md Moniruzzaman, CEO of Prime Bank Securities Ltd, said: “The market had remained shaky for quite some time. But today’s fall was kind of a free fall. No notable reason could be assigned to this, except for the escalation of the India-Pakistan conflict.”
“Surprisingly, the Indian market was positive today,” he added, noting that the BSE Sensex rose by 0.091 percent, while Karachi’s KSE 100 index lost 1.65 percent. “But the DSEX tumbled 3.01 percent, which is much more painful than the war-affected markets.”
A market analyst, requesting anonymity, said, “Market sentiment is negative. There was significant sell pressure amid the India-Pakistan conflict due to the associated uncertainty over the Bangladesh economy.” He added the indices were already low, and the plunge has deepened investor losses. “It is a retail investor-driven market, and we are seeing overreactions,” he said.
Turnover fell 6 percent from the previous session to Tk 516.46 crore. Of the 395 issues traded, only 9 advanced, while 385 declined. Baraka Patenga Power rose 9 percent to become the day’s top gainer, while Hami Industries fell 9 percent, becoming the worst loser.
India on Wednesday struck nine sites in Pakistan, reportedly targeting “terrorist infrastructure” in retaliation for a deadly attack in Indian-administered Kashmir that killed 26 people.