Dhaka, May 8 (V7N) — Bangladesh’s stock market experienced a sharp decline on Wednesday, marking one of its steepest losses in more than a decade. On the Dhaka Stock Exchange (DSE), 381 out of 393 listed shares and mutual funds suffered price drops, triggering a significant fall in the benchmark index.

The DSEX, the key index of the DSE, plummeted by 149 points, or 3.02 percent, closing at 4,802 points. According to market analysts, this is the largest single-day percentage drop since July 23, 2013.

The downturn was mirrored in the country’s secondary bourse, the Chittagong Stock Exchange (CSE), where a widespread decline in share prices was also recorded.

Market participants and analysts suggest that rising geopolitical tensions between India and Pakistan may have contributed to the panic-driven sell-off. Both countries are reportedly engaged in escalating military activity, prompting fears of broader regional instability. Similar impacts were seen in Pakistan’s stock market, which also faced a sharp decline on the same day.

India’s stock market saw an initial dip during early trading hours, but managed to recover modestly by the end of the session. No major negative impact was observed in other global financial markets.

In Bangladesh, however, this drop reflects growing investor anxiety and a deepening crisis of confidence. Market insiders have noted that beyond regional tensions, factors such as weak economic indicators, regulatory concerns, and a lack of institutional participation have contributed to persistent bearish sentiment over recent months.

Many investors remain on the sidelines, awaiting clearer policy direction and greater market stability. In the meantime, turnover continues to fall, and the sell-off trend is deepening.

Experts warn that unless confidence is restored through strong regulatory interventions and market-friendly policies, the downward spiral may continue.

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