Dhaka, Bangladesh (BBN) - The stock market opened sharply lower on Sunday, with the benchmark index plunging more than 110 points in early trading as investors rushed to sell their holdings amid growing fears over the escalating Middle East crisis.
The conflict between the United States and Iran entered its ninth day on Sunday with no sign of de-escalation, intensifying concerns among investors and businesses in Bangladesh. The situation has already pushed up global oil prices, raising fears of higher business costs and broader economic pressure.
The strikes have put oil-producing Gulf Arab countries on edge as the risk of wider regional escalation grows, with Iran responding by launching missile strikes toward Israel.
Against this backdrop, the market opened sharply lower following the previous week’s significant decline, with sellers dominating the trading floor as investors remained cautious about the market’s near-term momentum.
Within the first 30 minutes of trading, the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 110 points, or 2.10 percent, to 5,482 by 11:00 am.
Market operators said the ongoing conflict could significantly increase the cost of doing business, as oil prices are expected to rise further amid growing geopolitical tensions in the Middle East.
With oil prices rising and key maritime routes such as the Suez Canal and the Strait of Hormuz facing potential disruptions, Bangladesh could face multiple economic pressures. Local businesses have already expressed concern that the worsening Middle East crisis may pose fresh challenges for the economy.
Investors are also drawing parallels with the Russia–Ukraine war, which had a severe impact on Bangladesh’s economy and stock market. Many fear that another prolonged conflict could further weaken investor confidence and economic stability.
Market breadth was overwhelmingly negative. Of the issues traded until then, 314 declined, only 33 advanced, and 32 remained unchanged. Turnover remained subdued at BDT 1.46 billion during the period.
The port city bourse also followed the same trend, with the CSE All Share Price Index (CASPI) falling 211 points to 14,613 by that time.
BBN/SSR/AD