Home ›› 01 Dec 2021 ›› Stock
The stock downslide erased Tk 22,600 crore of Dhaka Stock Exchange’s market capitalisation in November.
Nervousness on the new coronavirus variant and uncertainty from the political and economic front led to the recent market weakness, said analysts.
The market capitalisation to GDP ratio of the bourse declined to 17.7 per cent, which was 19 per cent in September this year.
The current market cap to GDP ratio of the DSE is now the lowest among the emerging Asian-Pacific countries.
The DSE market cap stood at Tk 5,36,494 crore in November 30, which was Tk 5,59,087 crore on November 1.
Market capitalisation is calculated by multiplying the total number of a company’s outstanding shares with the current market price of their shares.
The key index DSEX lost 294 points during the period.
There was no respite for the investors who were already anxious
about the economic and political tensions.
“Stock market tumbled as investors feared the adverse impact of the new coronavirus variant on the already bearish market,” said EBL Securities in its market analysis.
Omicorn, the new variant, also rattled investor sentiment as the new variant of the Covid-19 virus identified recently in Africa put a scare on the stock markets worldwide, said a top broker.
The variant, which the World Health Organisation has labeled “omicron” – was first identified in either Botswana or South Africa, according to conflicting reports, and has since been detected in Belgium, Hong Kong and some EU countries.
Some other factors such as disagreement among the relevant regulators and inactive institutional investors also hammered the stocks, they said.
After 50 years, only 337 companies are trading on the DSE and most of them are fundamentally weak.
