The Dhaka Stock Exchange has witnessed a significant drop in its market capitalisation, losing Tk聽3,482.79 crore over the past month.
Market operators said that the investors actively sold shares in an effort to protect their portfolios from further erosion, as the market remained under pressure due to the ongoing bearish trend triggered by the prevailing political uncertainties and consecutive regulatory measures.
They also pointed out that the market is currently navigating through a phase of adjustment.
According to a data released by the Dhaka Stock Exchange, the market capitalisation declined by 0.53 per cent, falling to Tk聽6,60,873.60 crore on December 22 from Tk聽6,64,356.39 crore recorded at the start of trading on December 1.
The total market capitalisation of the DSE accounts for the value of all listed companies, bonds, treasury bonds, and mutual funds.
Market operators stated that the market needs to recover from its prolonged struggle with a crisis of confidence and issues of manipulation.
They said that the Bangladesh Securities and Exchange Commission鈥檚 not issuance of any definitive announcements regarding market reforms since the appointment of the new commission might have contributed to the market鈥檚 underperformance.
Stockbrokers attributed the decline in market capitalisation to the ongoing political instability, a lack of investor confidence, and the availability of better alternative investment options.
Investors, according to stockbrokers, have adopted a cautious approach amid regulatory reform initiatives and actions taken against market irregularities.
They also indicated that the weak economic indicators following the departure of the Awami League government might be influencing the current market conditions.
Despite the challenges, the DSE鈥檚 key index showed upward movement during this period, gaining just 3.82 points between December 1 and December 22.
The broader economy of the country is grappling with multiple issues, including soaring inflation, pressure on the exchange rate, and an ongoing energy crisis. These factors have collectively slowed down business production, further exacerbating the economic challenges.
