Dhaka Stock Exchange Decline Following U.S. Tariff Announcements
The Dhaka Stock Exchange faced a sharp decline on its first trading day after the Eid vacation, losing significant points due to U.S. tariff announcements. The textile sector was particularly affected, and global markets also saw substantial losses in response to these developments.
The Dhaka Stock Exchange (DSE) experienced a significant decline on the first trading day following a nine-day Eid vacation. On April 6, the DSEX index dropped by 45 points within the first 20 minutes, resulting in 267 listed securities experiencing price reductions. By mid-day, the DSEX index showed a minor recovery, declining by 25.85 points, with a total turnover of Tk223.80 crore.
The textile sector was notably impacted, experiencing the steepest declines among the traded stocks. At noon, the trading session revealed that of the stocks traded, 98 saw price increases, while 268 declined, and 24 remained unchanged.
This downturn comes on the heels of an announcement by United States President Donald Trump, who outlined reciprocal tariffs on various countries, including a 37% tariff on Bangladesh. The announcement occurred on April 2, while the DSE was closed for Eid, leading to an immediate impact on stock values when trading resumed.
Globally, Trump’s tariff announcements prompted a significant drop in stock markets, erasing $5 trillion in value from the S&P 500 index by April 4, marking one of the largest two-day declines on record. The fears of a recession triggered a decline in prices for oil and commodities, prompting investors to seek safety in government bonds, as reported by Reuters.
In summary, the Dhaka Stock Exchange suffered a notable decline following the Eid vacation, primarily influenced by President Trump’s recent announcement of reciprocal tariffs, which severely impacted the textile sector. With a recorded loss in the stock indices and evidence of global stock market downturns, investors are now navigating an increasingly cautious market environment driven by recession fears.
Original Source: www.tbsnews.net
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