Dhaka Stocks Fall for Second Consecutive Day Amid Investor Concerns

Dhaka’s stock market continued its downward trend for the second consecutive day on January 12, 2025, with the benchmark DSEX index dropping by 0.73% to settle at 5,156 points. The decline follows ongoing concerns over inflationary pressures stemming from recent tax hikes, which have impacted market sentiment.

The broader market showed a mixed performance, with 69 stocks advancing, 282 declining, and 48 remaining unchanged. However, investor participation remained low, with the daily average turnover at the Dhaka Stock Exchange (DSE) stagnant at Tk300 crore.

This recent dip follows a series of declines in the market, including a notable 3.03% drop in the DSEX index, reaching its lowest point in three months. Analysts attribute the downturn to inflationary pressures, tax increases, and a loss of investor confidence. Over the past eight years, more than 1.2 million investors have exited the market, signaling declining trust in its stability.

In response to the market’s challenges, experts are calling on the Bangladesh Securities and Exchange Commission (BSEC) to implement measures that could restore investor confidence and improve market conditions. These measures could include improving transparency, corporate governance, and the quality of initial public offerings (IPOs).

As the market faces continued pressure, stakeholders are closely monitoring the situation for potential interventions to stabilize the stock market.