Home ›› 08 Mar 2022 ›› Front
The Dhaka Stock Exchange (DSE) took yet another heavy battering as the benchmark index recorded the largest single-day fall in two years, plunging to a seven-month low.
The Russia-Ukraine war with no sign of slowing down continued to weigh on investor sentiment, dealers say.
The market began its slide soon after opening with the benchmark index crashing more than 182 points, or 2.74 per cent to settle at 6,456. The index was its single-day biggest fall since March 16, 2020, when it nosedived 196 points and lowest since July 29, 2021, when it was 6,425.
With the crash, the index extended its losing streak for the fourth straight session after some respite in the early sessions of the week.
The market started the session weak as the escalating war between one of the largest economies Russia and Ukraine have broken investor confidence. However, the selling pressure deepened in the afternoon trade, according to the dealers.
“Investors may remain cautious and follow a wait and watch strategy for the time being. They avoided fresh positions until the sentiments and situation stabilises,” said an analyst at a top investment bank.
The Shariah-based DSEX ended 36 points or 2.55 per cent lower at 1,394. Similarly, the blue-chip comprising DS30 index slumped 64 points or 2.64 per cent to 2,374.
Elsewhere in Asia, bourses in Tokyo and Seoul ended with losses, while Hong Kong and Shanghai were positive. Equities in Europe were trading with gains in mid-session deals. International oil benchmark Brent crude jumped 10 per cent to more than US$139 per barrel.
The DSE fell across the board as out of 379 issues traded, 251 closed in red, six in green and six remained unchanged. Worst selling pressure was observed in all sectors led by cement, insurers, NBFI, textile, engineering and pharmaceuticals.
“As the bourse observed intense volatility amidst sluggish trading in previous sessions, investors engaged in selling shares from the beginning of trading hour with no sign of reversal,” said the EBL Securities in a note.
Consequently, the DSEX index fell below the psychological threshold of 6,500 in Monday’s big fall, it said. Investors’ confidence on the trading floor is yet to recover, fearing further contraction in their equity most of them favoured to exit to safeguard their investment, it added.
Individually, Meghna Condensed Milk Industries suffered the highest losses hitting the lower limit circuit at 10 per cent, followed by Aramit Cement, Vanguard AML Rupali Bank Balanced Fund, Envoy Textiles, Apex Spinning and Jute Spinners.
However, the DSE observed increased participation driven by intense sell pressure while turnover has advanced by 13.6 per cent and stood at Tk 740 crore as against Tk 650 crore in the previous session.
The trading was mostly concentrated on textile, pharmaceuticals, and miscellaneous stocks.
The port city bourse, CSE, also settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have declined by 271.6 points and 455.4 points respectively.
