Dhaka stocks dropped for the second consecutive session on Sunday, as the investors’ optimism over the market momentum faded, market operators said.
The key index of the Dhaka Stock Exchange, DSEX, decreased by 125.19 points, or 2.12 per cent, to close at 5,778.63 points, after losing 48.93 points in the previous session.
The key index on Sunday started the session with a dive, and continued the negative trend until the end of the session, ending in the negative trajectory.
The turnover of the DSE also decreased by more than 50 per cent, as investors reduced their activity across the trading board.
The DSE posted Tk 480.89 crore in its turnover on the day, compared with that of Tk 999.01 crore in the previous session.
Investors started showing increasing interest on the market for most of the sessions after August 5, following Sheikh Hasina’s resignation as prime minister and fleeing from the country on the day, ending her 15-year rule amid an unprecedented student-led mass uprising against her authoritarian regime.
Market operators said that the market was now reflecting the ongoing economic crisis in the country.
Saiful Islam, president of the DSE Brokerage Association of Bangladesh, said that the capital market of the country surged due to the optimism after the recent political change.
Optimism faded as media reports on corruptions were revealing the real picture of the country’s economic situation, he said.
Ashequr Rahman, managing director of Midway Securities, said, ‘We are seeing the massive level of corruption in banking sector through media reports. Investors are shaky about the economic condition seeing these, as they fear the banking sector of the country may collapse.’
He further said that the circuit breaker limit was a big problem for the market.
The Bangladesh Securities and Exchange Commission on April 24 restricted share price fall at maximum 3 per cent for all companies.
Ashequr said if investors want to sell their shares to book profits, or to buy other shares, they would face restrictions due to the floor price.
‘Continued selling pressure due to the floor price changes market dynamics towards a negative vibe,’ Ashequr added.
Of the 398 issues traded on Sunday, 18 advanced, 366 declined and 14 remained unchanged.
The DSE Shariah index decreased by 24.53 points, or 1.94 per cent, to close at 1,240.18 points on the day.
The DS30 index lost 52.73 points, or 2.41 per cent, to finish at 2,126.60 points.
On the sectoral front, bank issues exerted the highest turnover, followed by the pharmaceutical and telecom shares.
EBL Securities in its daily commentary said, ‘The market remained sale-dominant throughout the session as investors opted to escape further losses in their portfolios amidst prevailing volatility and shied away from taking fresh positions in equities amidst uncertainties regarding the market’s trend.’
Grameenphone topped the turnover chart on the day with its shares worth Tk 49.26 crore changing hands.
BRAC Bank, British American Tobacco Bangladesh, Square Pharmaceuticals, Olympic Industries, DBH Finance, United Commercial Bank, Techno Drugs, Heidelberg Materials Bangladesh and Marico Bangladesh were the other turnover leaders.
