Media report said Dhaka Stock Exchange (DSE) suffered the biggest percentage decline in 11 months driven by sell-offs as concerns over the ongoing Russian war in Ukraine continues to prey on the minds of investors. The DSE main index dropped 182.12 points or 2.74 per cent to close at 6,456.51 points on Monday. This marks the biggest slide in a day since April 4 last year when the gauge fell by 3.44 per cent. It appeared that the shock was almost unforeseen as even the chairman of the Bangladesh Securities and Exchange Commission could not pinpoint any reason for the bearish spell except the effects of rising oil prices of the effects of Ukraine-Russia war. In effect the entire global economy is stumbling. Investors are selling shares out of fear. DSE has huge foreign investment and their decision may have been propelled by war fear.
Morning broke out Monday in Dhaka with the news of crude oil prices soared past $130 a barrel, its highest since 2008, as the United States and its European allies began weighing the prospect of banning imports of Russian oil and gas. Russia is a big oil and gas producer and exporter to European market. But any stop of Russian oil or gas import by USA and European nations will have serious and immediate impact to soaring the cost of manufacturing and partly to make scarce Russian goods and services because of ban on their import and transfer of money.
Asian markets were a sea of red as Japan’s Nikkei sank 3.4 per cent to a 15-month low, while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2.4 per cent. Chinese blue chips shed 2.3 percent destabilising every big market. Europe’s benchmark STOXX index fell 2.82 per cent to a year-long low, as Germany’s DAX looked set to confirm a bearish market after suffering a 20 percent decline since its January high. Market experts attributed the slump in Bangladesh’s capital market to panic over soaring oil prices. We would say that stock market managers must diligently handle the situation to keep it out of panic in any situation. Any slump in stock market will make the economy to suffer. Capital market bounced back after years of setback but sudden panic may have far reaching destabilisation again. We would say investors’ confidence must be protected by good market governance and sudden pressure must be held in check.
