DSEX slumps to one-year low

The start of the session saw a fall as shares were crushed all across the board. With the fall, the DSEX extended losses for the fourth session in a row and settled at 4,281—its lowest since April 10 last year. Protracted low volume of trade and approaching bank’s stock exposure adjustment did not allow the market participants to take fresh positions, analysts said. Other factors, including budgetary speculations, law and order situation and lack of liquidity remained the main reason behind the dull activity at the share market, they said. The Shariah index DSES shed almost 9 points to 1,044. The blue chip comprising index DS30 fell by over 11 points to 1,647. The Chittagong Stock Exchange Selective Category Index CSCX ended at 8,015, slipping 62 points. Trading activity was slow as investors were mostly on the sidelines and volume figures of most shares were sluggish. The DSE turnover still remained far below Tk400-crore, which was considered very poor compared to the market depth. It stood at Tk343 crore, slightly up from the previous session’s Tk331 crore. The share business appears to be in a real trouble as investors except a few are not inclined to put fresh money in stocks owing to an uncertain future outlook, said a broker. He said the share market suffered fresh pruning as a section of investors indulged in quick profit-selling amid thin trading but there were not many willing buyers. Analysts said it was the extension of previous sessions’ selling as investors were not inclined to hold onto their long positions even on the blue chip counters due to fear of further losses ahead of the approaching deadline of bank stock exposure adjustment. According to the central bank, the banks will have to cut their stock exposure by July this year to 25% of their total equity. At the DSE, all the large cap sectors showed negative performances except food and allied and telecommunication, which edged higher. Engineering posted the highest loss of over 3%, followed by pharmaceuticals, banks and power declined by 1% each. Lanka Bangla Securities said the market got spooked by the hefty sell-off after seeing continuous fall in index in past three trading sessions. It added that the market sentiment might have succumbed to the bearish grip as soon as the benchmark index breached the 4,300 support level. “Some profit taking could not be ruled out as major large cap stocks were under heavy selling.”