The country’s bourses have been in turmoil for the last eight months. Recently, the India-Pakistan war has sparked anxiety, although it has no direct impact on the share market.
The Dhaka Stock Exchange (DSE) has dropped by almost 150 points following news of the conflict.
Since the new government assumed power last August, the Bangladesh Securities and Exchange Commission (BSEC) has failed to restore investor confidence despite being restructured. Since then, share indices have continued to decline. Over the last eight months, market capitalisation has dropped by Tk 61,000 crore, and indices have plunged by 1,000 points.
The failure to improve the market situation has sparked outrage among small investors. Recently, they have taken to the streets in protest. Last Thursday, they staged a demonstration wearing funeral shrouds in Dhaka’s Motijheel area, demanding the removal of BSEC Chairman Khondoker Rashed Maqsood.
Investors have blamed the incompetence and lack of knowledge of the Maqsood-led commission for the successive decline of bourses.
Maqsood assumed his role as BSEC chairman on August 18, 2024, following the fall of the previous fascist government on August 5. This leadership change had raised expectations of a recovery in the country’s share market. However, from his appointment to May 8 this year, the main DSE index, DSEX, has fallen by 1,002 points — or 17 per cent — from 5,904 to 4,902.
On August 18, total market capitalisation stood at Tk 7,08,964 crore. By May 8, it had dropped to Tk 6,52,444 crore. This means investors have lost Tk 56,652 crore based on a straightforward calculation.
In reality, the loss is even greater. Since the current commission took office, 15 treasury bonds have been listed and are now trading in the capital market. Their prices have been included in the total market capitalisation.
Excluding these treasury bonds, it becomes clear that investors have lost a total of Tk 1,08,817 crore in capital.
Speaking to Bangladesh Pratidin, DSE Director Minhaz Mannan Emon said, “We (brokers) are exhausted. Several broker houses have already had to lay off employees. However, if this slump continues, layoffs will not be enough to survive.”
He added, “We see no sign of hope in the market. The authorities do not seem to have any concrete plan to improve the situation.”
Translated & edited by Fariha Nowshin Chinika
