Fuel price hike sends Dhaka stocks tumbling 42 points

Dhaka stocks fell sharply on Monday, with the benchmark DSEX index losing 41.71 points, or 0.75%, to close at 5,550, ending its four-session winning streak as investors reacted to the government’s latest fuel price hike.

Before Monday’s decline, the DSEX had gained 213 points, or 4%, over four consecutive trading sessions.

Meanwhile, market turnover increased 5.5% to 7.9 billion taka from 7.5 billion taka in the previous session, indicating heightened trading activity amid the sharp market decline.

Of the 386 issues traded on the Dhaka Stock Exchange (DSE), only 100 advanced, while 254 declined and 32 remained unchanged, underscoring the breadth of the sell-off.

The port city bourse, Chittagong Stock Exchange (CSE), also closed in negative territory. Its Selective Categories’ Index (CSCX) and All Share Price Index (CASPI) fell 19 points and 34 points, respectively.

Market operators said the fuel price increase raised concerns over higher transportation, production and distribution costs, weighing on investor sentiment.

The government raised the prices of diesel, petrol, octane and kerosene by 20 taka a litre from Monday amid renewed pressure in global energy markets.