As global stocks tumbled amid reports of a Russian military offensive in Ukraine, its psychological effects have also rippled into the capital market in Bangladesh, bdnews24.com reports.
The Dhaka Stock Exchange's key index, DSEX, dropped 117 points, or 1.69 per cent, on Thursday -- the biggest decline since Oct 25. The DSEX closed at 5948 points on Wednesday.
The start of the war in Eastern Europe is having a "psychological impact" on investors in the country, according to Md Emran Hasan, CEO of Shanta Asset Management Limited.
With the Ukraine-Russia war already triggering a surge in oil prices, he believes it will increase the level of inflation in the country, which in turn will affect investments in the capital market.
Global stocks and US bond yields dived on Thursday, while the dollar, gold and oil prices rocketed higher as Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast.
Shortly after President Vladimir Putin said he had authorised what he called a special military operation, explosions could be heard in the pre-dawn quiet of the Ukrainian capital of Kyiv and the Ukraine government accused Moscow of launching a full-scale invasion.
The United States and its allies will impose "severe sanctions" on Russia after the attacks, US President Joe Biden said.
The equities rout in Asia looked set to continue in Europe and the United States, with a sharp jump in commodity prices adding to worries about inflation and risks to economic growth.
Asset markets have seen a sharp increase in volatility over the deepening crisis, with the Cboe Volatility Index, known as Wall Street's fear gauge, up more than 55 per cent over the past nine days.
Oil prices jumped more than 3.5 per cent to shoot past $100 a barrel on Thursday for the first time since September 2014.
Spot gold climbed more than 1.7 per cent to hit its highest level since early January 2021.
