The prime index of Dhaka Stock Exchange (DSE) witnessed a rapid fall to hit a record 30-month low on Monday as investors had kept selling their stocks in apprehension of further fall in share prices. 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, the added. They went on saying that many of the investors seeking to remain on the sidelines, awaited a bouncing market as the government’ 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 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 weaken companies need to delisted 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 88 points or 1.70 percent to 5,091 points on the day, which was the lowest level of DSEX in 30 months since January 01, 2017.
The core index also fell by 289 points in the past seven working days.
Besides, the comprising blue chips index (DS30) went down by 34.75 points or 1.87 percent to 1,818 while the DSE Shariah Index (DSES) fell by 24.38 points to close at 1,166 points. On the other hand, the total turnover on the DSE reached Tk 3.06 billion, over 14 percent lower from previous day’s value of Tk 3.54 billion.
The losers beat the gainers as out of 352 issues traded, 303 ended lower, 37 closed higher and 12 remained unchanged on the DSE floor. The market capitalisation of the DSE also decreased to Tk 3,787 billion on the day against Tk 3,858 billion in the previous day. Grameenphone (GP) dominated the DSE floor and became topped the turnover chart with 374,511 shares worth Tk 123 million changing hands. It was followed by Monno Ceramic, Fortune Shoes, Square Pharmaceuticals and United Power.
SEML FBLSL Growth Fund was the best performer, posting a gain of 9.32 percent while BIFC was the worst loser, losing 10 percent. Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE) also saw negative trend on Sunday with its selective category index (CSCX) losing 157 points to 9,487. Besides, CSE All Share Price Index (CASPI) also fell by 261 points to settle at 15,619 points on the day.
At the CSE, total 278 issues were traded. Among them, 40 closed higher, 220 ended lower and 18 remained unchanged. However, the number of shares transacted on the floor of the CSE was 6.22 million and the total turnover in value was almost Tk 144 million.