Biz-Econ

Bourses continues downward spiral, DSE index hits near 5-year low

Bangladesh’s stock market remains trapped in a persistent decline, with share prices dropping further each day, eroding investor capital and confidence. 

Trading volumes have also plummeted, exacerbating the silent financial strain on investors.

On Monday, May 26, 2025, both the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) saw widespread price declines, dragging down their key indices. 

The DSE’s main index, DSEX, fell by 16 points to its lowest level since August 13, 2020—a near five-year low, reminiscent of the downturn during the COVID-19 pandemic. The pandemic, which began impacting Bangladesh in March 2020, led to a 66-day market closure and a severe market crash, a pattern that appears to be repeating.

The DSE-30 index, comprising 30 select companies, dropped by 4 points to 1,741, while the DSE Shariah Index rose by 76.07 points to 1,033. 

At the CSE, the CASPI index fell by 52 points, with 73 companies gaining, 83 declining, and 18 unchanged. Trading volume at the CSE was Tk 11.73 crore, up from Tk 8.68 crore the previous day.

Investor Mashiur Rahman expressed frustration, stating, “The relentless market decline is bleeding us dry. My invested capital has halved, and the losses are indescribable. Despite improvements in other economic sectors, the stock market is sinking, and no measures are being taken to protect investors.”

Another investor, Ariful Islam, added, “The market is collapsing, yet no one seems concerned. Share prices are severely undervalued, fuelling panic. Most investors are facing such heavy losses they can’t even sell, leading to inactivity and rock-bottom trading volumes.”

On the DSE, only 168 companies saw price increases, while 77 remained unchanged, and the majority declined. Among companies paying 10% or higher dividends, 77 gained, 100 fell, and 36 were unchanged. For companies with dividends below 10%, 38 rose, 39 dropped, and 6 stayed steady. In the ‘Z’ group (non-dividend-paying companies), 33 rose, 29 fell, and 35 were unchanged. Among 36 mutual funds, 12 gained, 6 declined, and 18 were unchanged.

Despite the price drops, DSE trading volume rose slightly to Tk 282.61 crore from Tk 235.51 crore the previous day, though it remained below Tk 3 billion for the 11th consecutive day. Square Pharmaceuticals led trading at Tk 11.27 crore, followed by Baraka Patenga Power (Tk 10.09 crore) and BRAC Bank (Tk 8.83 crore). Other top-traded companies included Shahinpukur Ceramics, Midland Bank, Beach Hatchery, S Alam Cold Rolled Steel, NRB Bank, Uttara Bank, and Sonargaon Textile.