Dhaka Stock Exchange became the worst performer in September across the globe, losing 4.6 percent, as investors went on a selling spree fearing political unrest ahead of the national elections.
Peru's Lima General Index was the second worst performer and Karachi 100 Index of Pakistan came in third, according to Lanka-Bangla Securities, a stockbroker in Bangladesh.
“Investors sold off their shares anticipating an unstable political scenario in the country ahead of the elections,” said Wali-ul-Maroof Matin, managing director of Alliance Capital Asset Management Ltd.
Investors think the unstable political situation would push the market down, Matin added. Most institutional and individual investors adopted a wait-and-see approach to the market's reaction to political crisis, he said.
An abnormal price hike of some low cap companies discouraged a group of investors from taking a fresh position in the market, he said.
“September has been a month of share offloading by investors, who fear that the political scene is going to be chaotic in the days to come,” said LankaBangla Securities in its monthly market analysis.

Investors do not want to take any risk before a change of political power, the stockbroker said. “When there is a positive outlook on the political transition, the market will get back to a more comfortable zone.”
In addition to the political situation, the ongoing problem in the country's garment sector has had a negative effect on the overall economy, it added.
There was ample liquidity in the money market in September; the call money rate hovered around 7 percent, according to Bangladesh Bank. All the indices posted significant negative returns in the month.
All major sectors were in the red last month: cement fell 9.6 percent, non-bank financial institutions 7.20 percent and power 7.10 percent. However, foods gained 3.9 percent and textiles 0.6 percent.

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