The Price-to-Earnings (P/E) ratio on the Dhaka Stock Exchange (DSE), the country’s main stock market, declined during the outgoing trading week from October 5 to 9. According to the DSE’s weekly market review, the overall P/E ratio dropped by 2 percent over the five-day period.
At the beginning of the week, the DSE’s P/E ratio stood at 10.38 points. By the end of the week, it had decreased to 10.15 points — marking a decline of 0.23 points. Market analysts often view changes in the P/E ratio as an indicator of investor sentiment and overall market valuation.
A falling P/E ratio may reflect declining investor confidence or adjustments in stock prices relative to earnings.