Stocks extended their losses for the fifth straight session yesterday as the market reacted to the latest deadly attacks on secular publishers.
The catalyst for the sell-off was a statement from a local Al-Qaeda offshoot claiming the responsibility for the Saturday attacks.
“The news weighed on the markets,” said a leading broker. “Over the past few weeks, the market remained under pressure due to some factors, including weak macro economy and unimpressive third quarter earnings. The latest news has extended the fall.”
The benchmark index DSEX plunged steadily throughout the morning to below 4500-mark in the mid-day session.
However, the index was a little recovered during the afternoon trading. At the end of the day, it slid about 50 points or 1% to settle at 4,514, its lowest since June 28 this year and single-day biggest decline in recent months.
The Shariah index DSES was down over 11 points or 1% to 1,081. The blue chip comprising index DS30 closed at 1,709, slipping around 17 points or 1%.
The Chittagong Stock Exchange Selective Category Index CSCX ended at 8,387, dropping 104 points.
Being in the sidelines by some investors pushed down the volume of trade to almost two-year low as DSE turnover stood at Tk267 crore, the lowest since January 2 last year and 41% down over the previous session’s value.
Lanka Bangla Securities said the stocks were teetering as investors reacted to the news of the attacks on publishers, raising security concerns among the city dwellers.
All the major sectors ended in the red except telecommunication and pharmaceuticals sectors, which closed flat.
Stock prices of nearly 90% issues eroded as out of 317 issues traded, 250 declined, 43 advanced and 24 remained unchanged.
Besides, the news of LDCs’ exemption from paying patent drugs royalty till 2032 encouraged investors mildly to take a position in the pharmaceuticals stocks.