Bangladesh’s stock market extended its losing streak for a second straight week, with the benchmark DSEX index sliding 2.25% as an unresolved energy crisis dragged textile shares to their sharpest weekly loss.
The index fell 130 points to close at 5,656 on the Dhaka Stock Exchange (DSE), bringing its two-week decline to 218 points. Market capitalisation on the bourse has shrunk by roughly 10.3 billion taka ($85 million) over the same period, according to weekly data released by the exchange. Read Here
Textile stocks, among the most energy-intensive on the bourse, bore the brunt of the sell-off, losing 5.2% for the week even as they accounted for nearly a quarter of total turnover. Chronic gas and electricity shortages have forced factories to cut output or rely on costlier backup power, squeezing margins in an industry central to the export economy.
“The country’s macroeconomic outlook is facing fresh challenges from the prevailing energy crisis, discouraging investors from putting fresh funds into equities,” said Md Sajedul Islam, a DSE director and managing director of Shyamol Equity Management.
Adding to investor unease, the finance minister said this week that resolving the energy shortage could take at least two years, fuelling concerns about renewed inflationary pressure.
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Trading was limited to four sessions after the bourse closed for a public holiday, and turnover nearly halved to 22.86 billion taka from 45.28 billion taka a week earlier, with average daily turnover down 37% to 5.72 billion taka.
Market breadth was overwhelmingly negative, with 342 stocks declining against just 35 advancers and 11 unchanged. Sharp Industries was the most heavily traded stock of the week, followed by Saiham Textile, Runner Automobiles, Far Chemicals and ML Dyeing.
Brokerage EBL Securities said persistent worries over energy supply, a softer corporate earnings outlook and cautious sentiment continued to weigh on the market, while Sheltech Brokerage pointed to heightened regulatory scrutiny, including surprise inspections of brokerage houses, as an added drag.
Every sector ended the week lower, with power, food, banking, engineering, pharmaceuticals and telecommunications following textiles down. The blue-chip DS30 index fell 28 points to 2,135, while the Shariah-compliant DSES index dropped 24 points to 1,132.
The Chittagong Stock Exchange mirrored the decline, with its CASPI index down 325 points to 15,166, while its Selective Categories Index fell 172 points to 9,258.
Bangladesh’s readymade garment sector, the country’s largest export earner, remains particularly exposed to the energy squeeze, with manufacturers warning that gas rationing threatens delivery timelines and cost competitiveness. Analysts said sustained buying is unlikely until the government sets a clearer timeline for restoring stable industrial power supply.