TBT DESK: Bangladesh’s capital market suffered another bruising week as key indices fell, turnover slumped, and investor sentiment weakened, raising concerns over the fragility of recent reforms.

According to the Dhaka Stock Exchange (DSE) weekly review, the benchmark DSEX lost 73 points across five trading sessions, closing at 5,449 compared with 5,523 at the start of the week. The Shariah-based DSES shed 18 points, while the blue-chip DS30 dropped 43 points. In percentage terms, DSEX declined by around 1.5 per cent, with DS30 slipping more than 2 per cent.

The disappointment was most visible in turnover. Average daily transactions plunged to Tk 700 crore, down from above Tk 1,000 crore only weeks ago – a 39 per cent fall in share and unit trading volume.

“Ups and downs are part of the market,” said Tariqul Islam, a retail investor of nearly a decade. “But when turnover falls sharply, strong companies lose value and weak companies gain on speculation, confidence is eroded. Small investors like us had just started reinvesting, but many are already thinking of pulling back.”

Investor frustration was echoed by Sajeda Akter, who noted that despite regulatory reforms over the past year, weak companies continue to dominate whenever the market dips. “Many firms with no production still see share price hikes through insider trading. This hurts genuine investors,” she remarked.

Several market participants demanded the introduction of a buy-back law to delist non-performing or shell companies. Ruhul Amin, another investor, said: “A few companies are dragging the market down. They should not have been listed in the first place. A buy-back law is urgently needed.”

The sectoral picture was bleak. Prices fell in 20 out of 21 sectors, with housing registering only a negligible rise. Banks dropped by more than 17 per cent, non-bank financial institutions by 54 per cent, general insurance by 70 per cent, life insurance by 57 per cent, energy by 57 per cent, telecom by 59 per cent, and pharmaceuticals by 22 per cent. Out of 397 companies traded, prices rose for only 68, fell for 306, and remained unchanged for 23.

Brokerage houses argued that sudden penalties and restrictions imposed by the Bangladesh Securities and Exchange Commission (BSEC) contributed to the downturn. “The market is too fragile to absorb abrupt shocks,” said one brokerage branch manager in Motijheel. “Reforms must be gradual, not heavy-handed.”

Similar trends were observed at the Chittagong Stock Exchange (CSE), where the broad index CASPI lost 182 points, while the selective indices CSE-30 and CSE-50 each declined by over 1 per cent. Of 312 companies traded, prices advanced for 89, fell for 195, and remained unchanged for 28.

Market analysts warned that without stronger corporate governance, quality listings, and removal of weak firms, reforms alone will not bring stability. “Unless fundamentals improve, the market will remain prone to sudden shocks,” said a member of the capital market reform taskforce.

For now, weary investors are left hoping for a rebound to restore confidence and attract fresh institutional flows.