Stocks continued to show a picture of gloom as the benchmark index DSEX hit 11-month low amid a panic sell-off.
The DSEX was sharply down over 53 points or 1.3% to close at 4,302—its lowest since May 10 last year when it was 4,277.
During the last five sessions, the index has been on a losing streak, giving away around 80 points.
The Shariah index DSES fell 12 points or 1% to 1,044. The blue chip comprising index DS30 was down over 20 points or over 1% to 1,630.
The Chittagong Stock Exchange Selective Category Index CSCX settled at 8,057, shedding nearly 81 points.
The volume of trade in value still remained below Tk300 crore, which is considered very poor compared to the market depth.
Analysts at Sheltech Brokerage stated that DSEX lost around 205 points in March.
“This downward move was triggered by the liquidation of two mutual funds at the end of February. Then the market lost confidence as Bangladesh Bank reserves heist popped out. Further foreign investors’ sell-off in a few large cap stocks exaggerated the situation.”
Mounting selling pressure in small and large caps fueled steep fall of indexes.
All other sectors faced erosion. Among them, engineering was the worst loser, falling 1.8% led by BSRM Steel and BSRM. Ceramics came second as it was down 1.7%, driven by RAK Ceramic 1.8%.
All the major sectors including bank, cement, power, financial institutions and telecommunications decreased by 1.4%, 1.2%, 1.6%, 1% and 0.9% respectively while only food and allied, IT and mutual fund increased by 1%, 0.8% and 0.61%.
Mutual funds showed the highest turnover increase of 13.3% while engineering showed the highest turnover loss of 35.6%.
Pharmaceuticals and Chemicals had the highest contribution of 20% to turnover.
Emerald Oil was the biggest loser falling 9.7% on the news of arrest of its managing director because of his credit default in Basic Bank.
Lanka Bangla Securities said downtrend continued to grip the market for the fifth consecutive session with the benchmark index going down to 11 month’s low, depressed largely by the investors’ attempt to safeguard their position.
“This sort of breakout in downside of the 4,370 support level may have instilled bearish sentiment into investors.”