With the first fall in the New Year after 8 points gain in the initial two trading sessions, the DSEX closed at 4,400.1 points on Sunday
Stocks tumbled 59.15 points or 1.33% on Sunday, raising grave concerns among investors about the outlook of 2020 as the significant fall spooked investors afresh after the stifling year 2019.
Shareholders and investors alike in the capital market have expressed doubt about the capability of policymakers and stocks regulator in pulling out the market from debris after the main indicator of the prime bourse shed close to 1,000 points in the immediate past year.
With the first fall in the New Year after 8 points gain in the initial two trading sessions, the DSEX closed at 4,400.1 points on Sunday.
“Can you tell me what the rock bottom is?” asked Asif Ullah, a capital market investor.
“Can you tell me what the jobs of policymakers and securities regulator in a persistently falling stock market are,” the frustrated Asif, who lost above 40% of his stock value last year, was literally sobbing while cursing the capital market and blaming himself for pouring his hard-earned savings into stock business.
He attributed Sunday's fall to lack of directions and significant outcomes from the Thursday’s meeting of Finance Minister AHM Mustafa Kamal with stakeholders in the capital market.
After a slight gain on Sunday, the market began to fall sharply and finished in the negative zone as investors were confused about the outcomes of the finance minister’s meeting with the stakeholders, market operators said.
They said that Kamal had not outlined any immediate solution to the current bearish trend in the market.
After Monday’s meeting, the finance minister told reporters that the rumours were the prime culprit behind the current ailing state of the stock market. The government would be tough on implementing the related rules and regulations to put a end to the rumour mongers.
Market analysts and insiders said that despite the efforts taken by regulator and the government, the market could not get out of the bearish trend as investors’ confidence remained shaky due mainly to failure of the leadership in reshaping the market and the prolonged distressed macro indicators.
Requesting anonymity, a stock broker said the investors were confused about the decisions made in Kamal’s meeting. He also said that the finance minister had not mentioned anything new that might revive the investors’ confidence.
Selling of shares throughout the session mostly by sectors like pharma, fuel and power and bank led the market fall on Sunday.
Sluggish trading activities coupled with dampened investors mood dragged down the turnover by 24% to Tk292 crore, says EBL Securities in its daily market commentary.
The benchmark index of Dhaka bourse, DSEX closed at 4,400.1 points Sunday after losing 1.33% during the session while CASPI, key index of Chittagong Stock Exchange (CSE) declined 1.2% to close at 13,381.6 points.
DSE Shariah-based index DSES declined 1.39% to end at 995.4 points, while blue chip index, DS30, went down by 1.71% to close at 1,480.3 points.
The engineering sector contributed 16.9% of the total turnover while banking, insurance and textile sectors contributed 14.9%, 11.2% and 9.5% respectively, showed the daily market analysis of UCB Capital Management Limited.
Khulna Power Company Ltd secured the leadership position on the top turnover chart with a turnover of Tk19.1 crore with its share price closing at Tk53.1 per share.
SS Steel Ltd secured the highest gain of 6.8% during the session. Generation Next Fashions turned out the worst loser with its price declining by 7.1%.
Among the traded issues 52 gained, 269 declined and 33 remained unchanged during the session in Dhaka Stock Exchange while 37 gained, 163 declined and 20 remained unchanged in Chittagong Stock Exchange.
Dhaka Stock Exchange Brokers' Association (DBA) President Shakil Rizvi told Dhaka Tribune that ADN Telecom would make debut trading tomorrow. For the apparent reason many sold shares to purchase ADN scrips tomorrow (Monday) that triggered the sharp fall, he added.
The Dhaka Stock Exchange currently has a market capitalization of Tk337,629 crore with the benchmark index, DSEX down by 1.19% since the beginning of this year.