Bangladesh Equity Market Registers Worst Performance in September

The Bangladesh Equity Market Emerged As The Worst Performer Globally In September This Year, With The Prime Index Plunging 3.2 Per Cent Amid Broad-Based Profit-Booking Pressure Following Three Consecutive Months Of Recovery.

In Contrast, South Korea Was The Best Performer, Posting A Return Of More Than 10 Per Cent In September, Followed By Taiwan With 9 Per Cent And Pakistan With 7.34 Per Cent, According To EBL Securities.

Apart From Bangladesh, Only The Philippines Recorded A Marginal Decline Of 0.30 Per Cent During The Month, While Other Global Equity Markets Posted Gains.

Although Bangladesh's Stock Market Began The Month On A Positive Note — With The Benchmark Index Surpassing The 5,600 Level For The First Time In 11 Months — The Momentum Soon Lost Traction As Sellers Took The Lead, Weighing Heavily On The Indices.

“Investors Turned Cautious Amid Volatile Momentum In The Absence Of A Reviving Catalyst For The Market,” Said EBL Securities In Its Monthly Analysis.

Accordingly, The DSEX, The Benchmark Index Of The Dhaka Stock Exchange (DSE), Fell By 179 Points Or 3.2 Per Cent To 5,416 At The End Of September.

The Blue-Chip DS30 Index, Comprising 30 Prominent Companies, Dropped 111 Points To 2,082, While The DSES Index, Representing Shariah-Based Companies, Declined 55 Points To 1,172 During The Month.

Despite Some Short-Lived Pullbacks, The Market Remained Largely Volatile As Investors Adopted A Wait-And-See Approach, Reflecting Uncertainty About The Market's Trend And Outlook.

The Upcoming Earnings Season Also Prompted Investors To Take A Cautious Stance In Building New Positions In Equities.

Moreover, Concerns Persisted Over Market Momentum Following Recent Regulatory Measures Aimed At Strengthening Discipline In The Capital Market, According To The Stockbroker.

Investor Sentiment Was Reflected In The Average Daily Turnover, Which Dropped 6.3 Per Cent To Tk 8.70 Billion In September Compared To August.

While Selective Scrips Experienced Positive Movement Due To Targeted Buying By Opportunistic Investors Attracted By Perceived Cheap Valuations, Overall Market Activity Was Largely Dictated By Selling Pressure.

Meanwhile, Bangladesh's Economy Has Shown Signs Of Gradual Recovery After A Period Of Turbulence Caused By The Pandemic, The Russia-Ukraine War, And Domestic Political Upheaval That Culminated In A Regime Transition In August Last Year.

This Rebound Has Been Supported By Rising Exports, Strong Remittance Inflows, And Stable Foreign Exchange Reserves, Which Have Helped Ease Pressure On The Country's Macroeconomic Front.

Remittance Inflows Rose To $2.7 Billion In September, Marking An 11.69 Per Cent Year-On-Year Growth, Driven By Increased Use Of Official Channels Amid A Stable Exchange Rate Regime.

Furthermore, The Recent Favorable US Tariff Deal Is Expected To Sustain Export Momentum, While The Announcement Of A National Election Roadmap May Ease Political Tension And Bolster Economic Confidence, Said EBL Securities.

Building On These Developments, GDP Growth Is Projected At Around 5 Per Cent For FY26 By International Development Agencies, Indicating A Gradual But Steady Recovery In Economic Activity.

An Expected Policy Rate Cut Amid Declining Yields On Government Securities May Help Drive Market Momentum In The Coming Months, According To The Brokerage Firm.

However, Political Friction During The Electoral Transition, Elevated Banking Sector Vulnerabilities, And Subdued Private Sector Investment Remain Key Concerns, The EBL Analysis Added.