DSEX lost 196 points in last four consecutive days
The broad index of the country's prime bourse keeps falling, hitting a 41-month low as spooked investors have continued clearing off their stocks out of a lack of confidence.
Market analysts and insiders said that the investors had been suffering from a lack of confidence for long while disappointing data on major macroeconomic indicators were dampening investors’ confidence badly.
Concern over negative export growth, soaring non-performing loans (NPLs) and decreasing private sector credit exacerbated the ongoing confidence crisis among retail, institutional and foreign investors, they also said.
The key index, DSEX, of Dhaka Stock Exchange (DSE) lost 26.81 points on Tuesday, shedding 170 points during the last three consecutive days.
Over the last four consecutive trading sessions, DSEX lost 196 points as the shaky investors 'liquidated' stocks from most of the sectors, analysts said.
The index ended a moderately down week with a 0.7% fall on Thursday. But on Sunday, the fall extended to 1.6%, followed by a 1.4 % fall on Monday and 0.5% fall on Tuesday.
The key index of Dhaka bourse went down to 41-month low to 4,506 points. The index hit its lowest after July 11, 2016 when it was at 4,505 points.
Turnover at DSE, however, rose to Tk305 crore, up 11% from the previous day.
All of the major sectors went down except for banks which went up 0.025%. Among the large caps, Grameenphone, Square Pharma and British American Tobacco Bangladesh Company Ltd were hit the most.
Talking to Dhaka Tribune, Director of DSE Minhaz Mannan Emon said that lack of confidence was the main problem in the market and the news of economic indicators being gloomy compounded the situation in the already battered stock market.
“We sent letters to the finance minister and the Bangladesh Bank governor seeking a meeting on the market situation” Emon also said.
International Leasing Securities Limited in its daily market commentary said that the optimistic investors’ buying appetite was mostly observed in the beginning of the trading session but the shaky investors’ sell pressure wiped out the early gains.
EBL Securities in its daily market commentary said the price correction witnessed by large-cap stocks contributed to the market fall on Tuesday. Investors confidence got a battering hence they took a sideline approach to observe the market in pursuit of the bottom of the index.
Miracle Industries was Tuesday's best performer, posting a gain of 7.80% while Sonar Bangla Insurance was the worst loser, shedding 8.72%.
The Dhaka Stock Exchange currently has a market capitalization of Tk3,42,882 crore with the benchmark index losing about 1,450 points from its highest value of this year of 5,950 points since 24th January2019.
The port city bourse Chittagong Stock Exchange (CSE) also slipped into red. The selected index, CSCX and all Share Price Index, CASPI declined by 90.0 and 145.6 points respectively.