Share prices of nearly 40 listed companies have plunged below Tk 5 each as the stock market continues to sink amid political uncertainty, regulatory actions and deep financial-sector stress.
The sharp decline has pushed a group of companies into penny-stock territory, showing how severely investor confidence had deteriorated.
The fall accelerated after the political shift on August 5, 2024, when regulators began imposing strict disciplinary measures against market manipulation and irregularities occurred during the Awami League-led government.
These actions triggered heavy selling pressure on weak and non-performing companies that had long struggled with poor governance, negative equity or non-payment to depositors and lenders.
As a result, prices of many troubled companies dropped to levels not seen in years.
Ten of these companies now trade at Tk 1 per share, which include FAS Finance, International Leasing, People鈥檚 Leasing, Premier Leasing, Prime Finance, Family Textiles, Tung Hai Knitting, Nurani Dyeing, Apolo Ispat and Regent Textiles.
Several others trade at Tk 2 or Tk 3, such as C&A Textiles, National Bank, Phoenix Finance, Ring Shine Textiles, Bangladesh Industrial Finance, GSP Finance, Generation Next, First Finance, Union Capital, ICB Islami Bank and Bay Leasing.
Market operators said that these companies were facing strong selling pressure because investors no longer believed they would recover.
Regulatory measures have intensified the decline.
The Bangladesh Bank has already declared five Islamic banks 鈥� First Security Islami, Social Islami, Global Islami, Union and EXIM Bank 鈥� non-viable under the Bank Resolution Ordinance, 2025.
The Dhaka Stock Exchange suspended their trading following the central bank鈥檚 announcement that shareholders would receive nothing after the banks鈥� merger into a new state-owned bank.
The BB also confirmed that it planned to liquidate nine non-bank financial institutions, almost all of them are listed. Investors fear that more weak banks, NBFIs and insurers may face similar actions, eventually leading to delisting and total loss of investment.
At the same time, changes in margin loan rules have shaken short-term traders, who rely on leverage.
Many worry that tighter margin conditions will force further selling, deepen volatility and reduce market liquidity.
Political instability has added another layer of pressure.
Growing tensions ahead of the national election 鈥� expected in early February 鈥� have discouraged both domestic and foreign investors from taking new positions.
Violent clashes, vandalism and ongoing uncertainty have pushed many to hold cash or exit risky stocks altogether.
Analysts said that large institutional investors preferred to stay on the sidelines until they gained clarity on policy directions and market stability.
The Dhaka Stock Exchange index reflected this turmoil.
After rising to 5,777 points on September 24, 2024 on hopes of reforms and recovering economic activity, the DSEX slid sharply to 4,615 points on May 28, 2025 dropping 1,162 points amid punishment measures and uncertainty.
The index rebounded temporarily to 5,636 points on September 9 as liquidity improved and treasury bill and bond rates fell.
But the relief did not last. By Thursday, November 20, the DSEX fell again to 4,869 points, a decline of 767 points in just two and a half months.
Market operators said that the prolonged weakness stemmed from a combination of political anxiety, regulatory shocks, fears of further bank collapses and low institutional participation.
Investors continue to dump shares of weak companies, pushing them into penny-stock territory and amplifying the broader market slump.
