BM Desk:
Bangladesh’s stock market kicked off 2024 with cautious optimism, with the key DSEX index edging up slightly despite lingering concerns ahead of the national election. Investors, still feeling the hangover of 2023’s volatile market, held back from injecting fresh funds, resulting in subdued trading on the first day.
The DSEX index managed a modest gain of 3.95 points to reach 6,250 within the first two hours of trading. However, the blue-chip focused DS30 and the Shariah-compliant DSES slipped marginally, reflecting continued skepticism among certain investor groups. Turnover remained muted at Tk 1.85 billion, highlighting the cautious sentiment.
Small-cap stocks dominated the early action, with BD Thai Aluminum leading the charge in terms of traded volume. The stock saw Tk 176 million worth of shares changing hands, followed by Sea Pearl Beach, Olympic Accessories, and Khulna Printing. Overall, 108 stocks gained, 50 declined, and 148 remained unchanged on the DSE during the initial hours.
Across the bay, the Chittagong Stock Exchange (CSE) started the year on a negative note, with the CASPI index dipping 7.7 points to 18,512. This mirrored the general lackluster mood permeating the market.
Analysts attributed the cautious start to the looming national election and the lingering impact of the floor price policy implemented by the stock market regulator in 2023. While the policy aimed to prevent further crashes, many argue it has dampened investor confidence and kept good stocks off the radar, impacting the true reflection of the market’s health.
Looking ahead, the market’s trajectory remains uncertain. The upcoming election will be a key factor, while the regulator’s future approach to the floor price policy will also play a significant role in attracting fresh investments and driving sustainable growth in the Bangladesh stock market.
