DSEX extends losses on inflation worries

The Dhaka Stock Exchange endured a highly volatile session with the benchmark DSEX index swinging both ways before ending down on Thursday, while volumes and value declined further.

During the session, the index shed 26 points or 0.40 per cent to close at 6,565 after jumping to an intra-day high of 6,606 and falling to an intra-day low of 6,554.

Its junior indices—the Shariah-based DSES index was marginally down 1 point or 0.08 per cent at 1,432 while the blue-chip DS30 index fell 13 points or 0.56 per cent at 2,406.

“Stocks on the Dhaka bourse plunged on investors’ worries as the global economic outlook made them nervous to exert sell pressure on the bourse,” said EBL Securities in a note.

Amidst the global economic turmoil due to surging inflation, Sri Lanka’s economic hardship has also added to investors’ concerns, it said.

As a result, the nervous investors’ selling binge drove down stock prices, while risk-averse investors decided to avoid the market due to the volatility that lasted throughout the last couple of trading days, it added.

The inflation reading for March raised concern, according to dealers.

Inflation in Bangladesh hit a 17-month high at 6.22 per cent in March in a jump over government-set limit, as prices of essentials spiked through declared and clandestine hikes.

After the last highest-record rate of 6.44 per cent measured officially in October 2020-when the coronavirus pandemic was upending normal order--the consumer price index (CPI) was maintaining comparatively lower rate, below 6.0 per cent.

Turnover stood at Tk 823 crore, down almost 28 per cent over the previous session’s Tk 1,135 crore, backed by pharma (15.9 per cent), miscellaneous (12.1 per cent) and textile (11.3 per cent) stocks.

Gainers took a marginal lead over the losers as out of 381 issues traded, 91 closed up, 242 closed down and 48 remained unchanged.