• Friday, Apr 03, 2020
  • Last Update : 05:49 pm

Investors demonstrate as stocks continue to plunge

  • Published at 05:19 pm January 14th, 2020
dhaka stock exchange
Investors demonstrate in front of Dhaka Stock Exchange on Tuesday, January 14, 2020 Dhaka Tribune

Broad index of Dhaka Stock Exchange (DSE), DSEX closed at 4036.23 points on Tuesday

Bangladesh's prime bourse has passed another torrid day with substantial selling pressure, losing 87.24 points or 2.11% of market value.

Broad index of Dhaka Stock Exchange (DSE), DSEX closed at 4036.23 points on Tuesday while broad index of the port city's bourse, Chittagong Stock Exchange (CSE), CASPI declined 270 points to close at 12,300 points.

It was the lowest level of the DSEX, in 56 months since May 2015, when the index was 4,014.

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

Turnover in the Dhaka Stock Exchange, however, stood at Tk263 crore during the session, which was Tk287 crore in the previous session. 

Investors were in a rush on the day for selling their shares to avoid further losses, market insiders said.

The trend of sell-off intensified while the capital market traders' tension increased over the banks' profitability amid the government move for bringing down the lending rates to single digits, analysts said.

They also observed that few other factors including liquidity crisis, aggressive bank borrowing by government, declining outstanding foreign portfolio investment, sluggish earning growth, and poor payout ratio of listed companies, deepened the tension of investors.

Besides, tussle between mobile phone operator Grameenphone (GP) and telecom regulator Bangladesh Telecommunication Regulatory Commission (BTRC), and post-dividend free fall price adjustment of large-cap companies hurt the market.

The engineering sector contributed 13.5% of the total turnover while pharmaceuticals, textile and banking sectors contributed 12%, 10.1% and 8.8% respectively, showed the daily market analysis of UCB Capital Management Limited.

Among the traded issues, 32 gained, 293 declined and 30 remained unchanged during the session in Dhaka Stock Exchange while 21 gained, 203 declined and 20 remained unchanged in Chittagong Stock Exchange.

LafargeHolcim Bangladesh Ltd secured the leadership position on the top turnover chart with a turnover of Tk18.6 crore with its share price closing at Tk40.2 per share. Phoenix Finance 1st Mutual Fund secured the highest gain of 6% during the session. SS Steel Ltd turned out the worst loser with its price declining by 9.9%.