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Dhaka stocks declined for the second consecutive day on Monday with the benchmark DSEX index falling below 6,400-mark.
The risk-averse investors opted for quick profit-booking on major sectors as soaring inflation dented the investor’s confidence, according to dealers.
The DSEX moved in a range of 71 points, showing an intraday high of 6,417 and a low of 6,346. At close, it was down 49 points or 0.67 per cent to close at 6,357.
Among other indices, the Shariah-based DSES index shed 0.09 points or 0.65 per cent to settle at 1,388 while blue-chip comprising the DS30 index fell 15.37 points or 0.66 per cent at 2,314.
Inflation jumped to 7.42 per cent in May, hitting eight year high since May 2014, according to data released by Bangladesh Bureau of Statistics on Sunday.
Out of the 386 issues traded, 36 advanced, 325 declined, and 25 remained unchanged.
“Dhaka stock closed in the red trajectory after an intense bearish sentiment fueled heavy sell-off emerged since investors were unnerved over the eight-year high inflation,” said the EBL Securities in a note.
“Investors’ concerns loomed since foreign investors went in a selling mood on the backdrop of weakening taka, while the prospect of monetary tightening by the central bank to tame rising inflation might further dent investors’ confidence on the bourse.
Besides, bourses observed a decline in participation, while turnover has decreased by 8.2 per cent and stood at Tk 822 crore as against Tk 896 crore in the previous session.
On the sectoral front, miscellaneous (20.4 per cent) issues exerted the highest turnover followed by bank (16.6 per cent) and engineering (13.3 per cent) stocks.
Almost all of the sectors displayed dismal returns, out of which ceramic (-1.9 per cent), services (-1.8 per cent), and tannery (-1.5 per cent) exerted the most negative returns while miscellaneous (0.3 per cent ) generated some positive returns on the bourse.
The port city bourse, CSE, also, settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have declined by 83.4 and 139.9 points respectively.
