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Dhaka Tribune

DSE index experiences the sharpest fall in 2023

The majority of the stocks lost prices as 157 closed lower, 25 closed higher, and 182 remained unchanged on the DSE floor

Update : 06 Jun 2023, 07:02 PM

The Dhaka Stock Exchange (DSE) had its sharpest selloff of the year after experiencing a bullish trend for the previous two months. 

DSEX, the DSE's broad-based index, was down 40.1 points, or 0.6%, to 6,316. 

The index had also dropped 9.84 points the day before. This decline marks the largest drop for the major equity benchmark since November 20 of the previous year, when it fell by 0.81%. 

The market turnover fell 13.5% to Tk1086.88 crore, down from the previous day's seven-month high of Tk1256.68 crore.

The DS30 Index, which includes blue-chip businesses, declined 9.47 points to 2,188, while the DSES Index, which includes Sharia-compliant companies, fell 10 points to 1372.

The bulk of the equities dropped in value, with 157 closings lower, 25 closing higher, and 182 remaining unchanged on the DSE floor.

Regarding this fall, market insiders said this sudden downturn was due to several factors. 

Stockbrokers have blamed the political and economic uncertainties looming ahead of the national election, scheduled to take place in six months.

Additionally, caution among investors has heightened due to macroeconomic factors.

Inflation hit an 11 year high of 9.94% in May, while some investors preferred to book profits, anticipating a tough time ahead because of the ongoing energy crisis.

Moreover, there is no new incentive and no discussion about the stock market in the proposed budget, which made stakeholders disappointed.

In recent weeks, the market had been experiencing a series of rallies and corrections, and this morning's session initially appeared to be following the same pattern. 

Although on Tuesday the market showed positive momentum initially, the indices failed to sustain their gains after mid-session amid heavy selling pressure on major sector stocks.

While the market showed positive momentum initially, the indices failed to sustain their gains after the mid-session amid heavy selling pressure on major sector stocks.

After 1 pm, a wave of desperate sellers emerged, dragging the DSEX down.

The price falls of large-cap stocks such as LafargeHolcim, Sea Pearl Beach Resorts, BSRM Steels, Navana Pharma and Unique Hotel and Resorts mostly contributed to the market plunge.

Mid-cap stocks dominated the turnover list, with Associated Oxygen becoming the turnover leader with Tk52.9 crore changing hands, followed by Intraco Refueling Station, Meghna Life Insurance and RD Foods.

The Chittagong Stock Exchange (CSE) also slumped, with the CSE All Share Price Index (CASPI) losing 109 points to settle at 18,667 and its Selective Categories Index (CSCX) shedding 65 points to close at 11,169.


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