Staff Correspondent

The month of April brought no respite for investors in Bangladesh’s capital market.Following the Eid holidays, trading resumed with continued decline, dragging the key index of the Dhaka Stock Exchange (DSE) down by 302 points and wiping out Tk 17,000 crore in market capitalisation.According to a review of the month’s trading on the DSE, the benchmark DSEX index, which began April at 5,219 points, ended at 4,917 points.Out of 18 trading sessions in the month, the market witnessed losses on 15 days.The consistent fall discouraged fresh investments, with many investors opting to pull their funds out.As a result, the market lost around Tk 17,000 crore in capital.Not just the key index, the Shariah-compliant index DSES also suffered, falling by 74 points over the month.Similarly, blue-chip shares were not spared either, as the DS30 index—comprising selected well-performing companies—dropped by 92 points.Data from Central Depository Bangladesh Limited (CDBL) revealed that 11,429 investors emptied their beneficiary owner (BO) accounts during the month.The number of BO accounts with zero balance has now surpassed 3.8 lakh, while the total number of active accounts dropped by over 10,000.Investors expressed grave concerns over the prolonged downturn.Many believe that the erosion of confidence is making it increasingly difficult for the market to stabilise.Those still holding onto hope are being let down day by day.Tarek Hossain, who has been trading shares for nearly five years, said, “The commission used to say that investing in good companies would not lead to losses. That only those investing in junk shares were getting hurt. But in recent months, the prices of many good stocks have dropped. How can a Tk 100 share fall to Tk 30–40? The commission has failed to answer that.”Another investor, Monsur Ali, noted, “The biggest damage has come from margin loans. Those who bought shares with margin loans were forced into selling their good stocks due to forced sales. This has adversely impacted the overall market.”A member of the capital market reform taskforce, speaking on condition of anonymity, said, “Margin loans have become a thorn in the market’s side. There had been no strong regulations regarding loan issuance or use. Recently, the taskforce submitted new proposals to the commission. It recommended setting a maximum margin loan limit of Tk 10 crore and a minimum of Tk 10 lakh, and not allowing margin loans without active market investments.”The taskforce has also advised that margin loan funds should not be used for locked-in shares, sponsor shares, placement shares, unlisted firms, bonds, debentures, or unlisted mutual funds.Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB), said, “We need to bring large multinational companies into the market. If we can list such firms, investor confidence will return.”But, multiple sources within the Bangladesh Securities and Exchange Commission (BSEC) confirmed that no major initial public offering (IPO) is expected this year. This dims hopes of a near-term turnaround for the market.To add to the woes, insiders say recent internal conflicts within the BSEC and the dismissal of 21 officials have also negatively impacted investor sentiment.