Stocks declined broadly on Sunday amid growing investor concern about the looming political uncertainty in the run up to the general election.
The benchmark DSEX index shed 61 points or 1.5% to 4,036, its lowest in four weeks and leading it to slide for the fourth consecutive session.
The blue chip index DS30 was down 28 points or 1.9% to 1,484. The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, plunged 106 points to 7,876.
“Market turned in surprisingly down, breaking a consolidation band downwards. After consolidating for last two weeks, this sort of breakout in downside may instill bearish sentiment among investors,” said Lanka Bangla Securities in its daily market analysis.
This led to a shaky opening of current week dampened by investors’ concern over the imminent political uncertainty, it said.
It said market appears to be hitting a wall as political disturbance is working as a negative catalyst fading the most recent positive economic indicators those have propelled a rally in index three weeks back.
Participation continued to fall as the total turnover value at DSE stood at Tk4.1bn, which was 14.5% lower than that of the previous session and the lowest in the last 10 trading sessions. IDLC Investment said heavy shed-offs fueled by steep decline in most of the small cap and large cap stocks took a toll of stocks.
Fear of potential political turmoil accelerated this kind of straight downbeat and alongside, profit-booking tendency ahead of Eid-Ul-Azha changed market sentiment slightly and put the bourse in red zone, it said.
Out of 18 sectors, all the major sectors saw drastic fall in market capitalisation except mutual fund which gained 0.21% in market capitalisation.
Tallu Spinning became the top turnover leader with shares worth Tk201.7m changing hands despite regulator is investigating into its recent unusual price hike. Its share prices rose more than 4%.
After Tallu, Bangladesh Submarine Cable Company Ltd, CMC Kamal, RN Spinning, United Airways, Grameenphone and Meghna Petroleum were the other turnover leaders.
