Dhaka stocks tumble amid growing investor fears over US-Israel war on Iran

Dhaka stocks tumbled in the first half today amid rising fears over the impact of the conflict in the Middle East after Iran warned of attacks on ships sailing through the Strait of Hormuz, one of the world’s most critical maritime trade routes.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plunged 131 points, or 2.37 percent, to 5,402 in the initial trading hours.

The decline came after a day of recovery in share prices. The premier bourse dipped amid concerns after the conflict began. Yesterday, the index rose 77 points.

The DS30, the blue-chip index, fell 59 points, or 2.89 percent, to 2,073.

The DSES, the Shariah-based companies’ index, also slumped in early trade.

Stock market analysts said investors were panicked as the Iran war was intensifying, which could impact Bangladesh’s economy, which is highly dependent on oil and gas from Middle Eastern countries.

Yesterday, Danish shipping giant Maersk suspended all new cargo bookings between the Indian subcontinent, including Bangladesh, and the Gulf region amid the evolving situation in the Middle East.

Earlier, Mediterranean Shipping Company (MSC), in a customer advisory issued on March 1, declared a booking suspension for worldwide cargo to the Middle East.

Several other global shipping lines also announced the suspension of Middle East cargo bookings.

At the DSE, turnover — an important indicator of the market — stood at Tk 456 crore as of 11:53 am.

Among the traded stocks, 40 advanced, 326 declined, and 22 remained unchanged.