The prime index of Dhaka Stock Exchange (DSE) witnessed a rapid fall to hit a record 31-month low, biggest single-day fall in 17 months, on Sunday as investors had kept selling their stocks in apprehension of further fall in share prices. DSEX, the core index of DSE fell by 96.95 points or 1.88 percent to settle at 5,033.
It was the biggest single-day index fall in more than 17 months since February 15, 2018, the lowest level of DSEX in 31 months since December 29, 2016. A number of investors staged demonstration in front of the DSE building protesting the contentious fall in the capital market on the day. The investors demanded immediate steps from the government to bring back strong capital market for avoiding big losses.
Market analysts said government's transfer to liquidate People's Leasing and Financial Services (PLFS) and the telecom regulator’s strict stance on Grameenphone mainly created the panicking situation among the investors which prompted them to sell off shares. Besides, gas price hike put a negative impact on the manufacturing companies' shares as this might reduce their profits which also pressuerised investors to sell their shares, they added.
They went on saying that many of the investors seeking to remain on the side-lines awaited a bouncing market as the government’s measures failed to get investors’ confidence up. Capital market specialist AB Mannan told Bangladesh Post, “The market is going to bearish day by day. Investors have fled from the market by off-loading their shares for avoiding further losses. The government’s steps is needed to recover the market.”
Market analyst Prof Abu Ahmed told this correspondent, “The stocks fell because of different issues including transferring to liquidate People's Leasing and Financial Services (PLFS) by the government.” The government needs to take some market-supportive measures to bring back investors’ confidence, he said adding that some financially weakened companies need to delist from the market.
He urged the finance minister to sit with top managements of some good companies to bring in the capital market for stabilising the market. DSEX, the prime index of DSE, decreased almost 96.95 points or 1.88 percent to 5,033 points on the day. Two other indices also declined sharply. The DS30 index, comprising blue chips, lost 30 points to finish at 1,799 and the DSE Shariah Index slumped 18.64 points to close at 1,157.
Besides, the comprising blue chips index (DS30) went down by 30 points to 1,799 while the DSE Shariah Index (DSES) fell by 18.64 points to close at 1,157 points. On the other hand, the total turnover on the DSE reached Tk 3.68 billion, over 7 percent lower from previous day’s value of Tk 3.95 billion. The losers beat the gainers as out of 352 issues traded, 273 ended lower, 61 closed higher and 18 remained unchanged on the DSE floor. The market capitalisation of the DSE also decreased to Tk 3,773 billion on the day against Tk 3,822 billion in the previous day.
Fortune Shoes dominated the DSE floor and became topped the turnover chart with 4.96 million shares worth Tk 200 million changing hands. It was followed by United Power, Federal Insurance, JMI Syringes and Beximco. Vanguard AML Rupali Bank Balanced Fund was the best performer, posting a gain of 10 percent while Aziz Pipes was the worst loser, losing 9.97 percent.
Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE) also saw negative trend on Sunday with its selective category index (CSCX) losing 185 points to 9,373. Besides, CSE All Share Price Index (CASPI) also fell by 309 points to settle at 15,415 points on the day. At the CSE, total 284 issues were traded. Among them, 42 closed higher, 231 ended lower and 11 remained unchanged. However, the number of shares transacted on the floor of the CSE was 7.92 million and the total turnover in value was almost Tk 171 million.
