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Stocks keep bleeding

  • Published at 12:28 am January 9th, 2020
stock market
A group of retail investors with their mouths covered stage a silent protest in front of the old DSE building at Motijheel C/A, protesting at the continued fall in stock prices on Wednesday, January 8, 2020 Dhaka Tribune

DSEX sheds 53 points, falls for fourth consecutive day

The key index DSEX of the country's prime bourse witnessed yet another sluggish trading session on Wednesday, extending the losing spell for the fourth consecutive sessions amid the panic selling from the investors.

Market continued to bleed amid fall in stocks in large-cap scrips such as Grameenphone, Square Pharma and British American Tobacco Bangladesh Company Limited (BATBC).

The broad index, DSEX, stayed below the 4,300 mark and closed at 4,228, losing 53 points or 1.23% in Wednesday's session. The index shed 230.92 points in the last four sessions. Turnover was also down 14.5% from previous session and stood at Tk280 crore.

The investors went for selling of shares within the first half an hour and continued till the end which led the benchmark index to close around 4,230 marks which was the lowest since May 2, 2016.

After the trading closed at 2:30pm Wednesday, small investors held a protest programe in front of the Dhaka Stock Exchange old building at Motijheel in the capital. 

International Leasing Securities Limited in its daily market commentary said the extended bearish vibe in the market kept the investors worried as well as provoked them to go for sell-offs to avoid further losses on their portfolios. 

Most of the large-cap stocks, known to be trusted securities, also suffered from heavy correction, leading the distressing fall of the market. 

Selling pressure on telecommunication, pharma and financial institutions sectors contributed the most to the market fall on Wednesday, EBL Securities said in its daily market commentary.

DSE Shariah-based index DSES also declined 1.96% to end at 953.9 points, while blue-chip index, DS30 went down by 1.04% to close at 1,421.4 points.

LafargeHolcim Bangladesh Ltd led the top turnover chart with a turnover of Tk14 crore with its share price closing at Tk38.6 per share. ADN Telecom Ltd secured the highest gain of 9.9% during the session. 

Meghna Pet Industries Ltd turned out the worst loser with its price declining by 9.2%. 

The Dhaka Stock Exchange currently has a market capitalization of Tk326,427 crore with the benchmark index, DSEX, down by 5.04% since the beginning of this year.  

Key index of Chittagong Stock Exchange (CSE), CASPI declined 0.94% to close at 12,887.7 points. 

Among the traded issues, 51 gained, 249 declined and 51 remained unchanged during the session in Dhaka Stock Exchange while 47 gained, 146 declined and 26 remained unchanged in Chittagong Stock Exchange.

The market has been in the doldrums for almost two years, excepting January 2019, amid a host of reasons including woes in the banking sector, lack of governance in the capital market, and Grameenphone’s dispute with the Bangladesh Telecommunication Regulatory Commission over an audit claim.

The investors had been suffering from a lack of confidence for long while disappointing data on major macroeconomic indicators were dampening investors’ confidence badly, they say.