Dhaka stocks extended their losing streak for the seventh consecutive session on Monday as jittering investors dumped shares amid fears of fallout from the new margin loan rules, the merger of five distressed Islamic banks, and mounting political uncertainty ahead of the national election.
The key index of the Dhaka Stock Exchange, DSEX, fell by 39.17 points, or 0.8 per cent, to close at 4,860 on Monday.
The index lost 261.47 points over the past seven trading days, while market capitalisation has dropped by Tk 15,815 crore during the period.
Market operators said that panic-driven selling dominated the trading on the day as investors grew increasingly uneasy over regulatory and financial sector developments.
Investor sentiment worsened after Bangladesh Bank on November 5 formally declared the five Islamic banks 鈥� First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank 鈥� 鈥榥on-viable鈥� under the Bank Resolution Ordinance 2025.
The central bank appointed administrators to each of the banks and confirmed that shareholders would not receive compensation, as the banks鈥� share values had fallen to zero due to negative net asset values.
Market insiders said that investors fear similar actions could follow for other weak commercial banks, non-bank financial institutions, and insurance companies.
Speculation about potential closures or further mergers has fuelled panic selling, dragging the index lower.
Political uncertainty has deepened the pressure. Both domestic and foreign investors are reluctant to take new positions amid concerns about market and policy stability before the polls.
The cautious mood was reflected on turnover, which dropped to Tk 356.3 crore on Monday from Tk 402.2 crore in the previous session.
Anwar Galvanizing topped the turnover chart with transactions worth Tk 21.45 crore, followed by Orion Infusions, Summit Alliance Port, Dominage Steel Building Systems, and Square Pharmaceuticals.
Analysts said that large investors prefer to stay on the sidelines during uncertain times, which reduces buying demand and triggers a liquidity squeeze.