Dhaka stocks extended their losing streak for the fifth consecutive day on Thursday amid panic triggered by the suspension of trading in five Shariah-based banks declared non-viable by the central bank.
Investors, already rattled by prolonged market volatility, reacted sharply to the Bangladesh Bank鈥檚 move, which effectively wiped out the value of shares held in the five banks.
The DSEX, the key index of the Dhaka Stock Exchange, dropped by 18.95 points to close at 4,967 on Thursday, following a 32.17-point fall the previous day.
The index has now lost 122 points in the past five sessions, reaching its lowest level since July 8, when it last fell below 5,000 points.
EBL Securities in its daily commentary said selling pressure dominated the market as a persistent confidence crisis, aggravated by reports on the nullified share value of five liquidity-strapped banks, which further dampened investor sentiment.
Trading of First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank was suspended from November 6 until further notice at the instruction of the Bangladesh Securities and Exchange Commission after Bangladesh Bank brought them under the Bank Resolution Ordinance 2025 for merger.
The move followed the central bank鈥檚 announcement that the share value of the five banks had dropped to zero due to their negative net asset values鈥攗p to Tk 450 in losses per Tk 10 share.
Investors expressed anger and frustration, staging demonstrations outside the DSE premises, calling the losses unjustified and demanding government compensation.
Bangladesh Bank later stated that although shareholders, including sponsors and general investors, would not receive any value for their shares, the government could consider compensating small investors if it chose to do so.
The trading halt and merger uncertainty have deepened the crisis of confidence in the capital market.
Investors are uncertain about what will happen to their frozen holdings as the BSEC has yet to make a final decision on the delisting or settlement process of the five banks.
Officials from the BSEC said they had not yet received an official letter from the central bank about the zero valuation and would decide once the documentation arrives.
Market insiders and brokerage leaders criticised the regulator for not suspending the trading of the banks earlier, saying its inaction caused unnecessary panic and intensified the sell-off across the broader market.
Analysts said the DSEX鈥檚 fall below the psychological threshold of 5,000 points has made margin-loan investors particularly vulnerable, as lenders now have the right to force-sell shares to cover losses.
The continued instability, they warned, could further erode investor confidence unless the regulators act swiftly to restore market discipline.
