The Dhaka Stock Exchange has experienced a significant decrease in its market capitalisation, by Tk 29,558.05 crore, in the past one month.
Market operators said that investors sold shares heavily in an effort to prevent further erosion in their portfolios amid the bearish vibe on the market following the ongoing political worries in the country.
They said that the market was going through an adjustment process.
According to data published by the Dhaka bourse, the market capitalisation decreased by 4.21 per cent to Tk 6,72,115.57 crore on October 3 from Tk 7,01,673.62 crore recorded at the end of September 1 session.
The market capitalisation of the DSE included market value of all listed companies, bonds, treasury bonds and mutual funds.
The market operators said that the market would have to heal first from its long struggle with confidence crisis, manipulation and the government鈥檚 apathy.
They also said that there was no clear announcement from the Bangladesh Securities Exchange and Commission regarding market reforms the after the new commission鈥檚 appointment, which might have contributed to the negative performance.
An expert said that the decrease in market capitalisation was due to the ongoing political worries, confidence crisis and better alternative investment opportunities.
Capital market analyst Md Musa, a United International University professor, said that the investors were moving away from the market to keep their investment safe amid the current situation.
鈥楾hey are not feeling confident about the market. Moreover, the investors are observing better opportunities in other financial sectors. For example, while share prices are falling on one hand, investments in banks are seeming profitable on the other,鈥� he said.
Investors were being watchful of the market amid the regulatory reformation initiatives and decisions about irregularities, stockbrokers said.
They added that poor economic indicators following the ouster of the Awami League government led by Sheikh Hasina might have been reflected in the current situation.
The key index lost a total of 366.79 points from September 1 to October 3.
The country鈥檚 economy is facing a lot of problems, such as high inflation, pressure on the exchange rate, a decrease in foreign exchange reserves and energy crisis. These issues have also slowed down business production.