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Dhaka stocks opened in a terribly bad mood on Tuesday triggered by the government’s decision on bringing back rolling power cuts.
The decision generated nervous selling from all the quarters but circuit breaker limited the market decline, dealers say.
Trading volume in terms of value fell to a 15-month low as the benchmark DSE index plunged by 1 per cent.
The DSE turnover stood at Tk 319 crore—its lowest since April 5, 2021 when it was Tk 236 crore.
At the end of the day, the DSEX declined 63 points to close at 6,153. In two trading session, it lost 150 points.
Among other indices, the Shariah-based DSES index fell by 11 points or 0.85 per cent to end at 1,348 and the blue-chip DS30 index was down 22 points or 1 per cent at 2,213.
More than 90 per cent of the companies witnessed erosions in their share prices as out of 386 issues traded, 21 gained, 344 lost and 21 remained unchanged.
“Equity indices of the Dhaka bourse observed dominant selling pressure as investors were unnerved after the government unveiled conservative policies on the backdrop of pressure on country’s foreign exchange reserve and rising inflation,” said the EBL Securities in a note.
Investors were cautious owing to the market’s persistent pessimism, which was exacerbated by reports that inflation in June, the last month of the last fiscal year 2021-22, soared to 7.56 per cent which is the highest in eight years.
On the sectoral front, pharma and chemical (16.3 per cent) issues exerted the highest turnover followed by bank (13.4 per cent ) and textile (12.9 per cent ) stocks.
Most of the sectors displayed dismal returns, out of which paper (-1.9 per cent ), ceramic (-1.9 per cent ), and jute (-1.9 per cent ) exerted the most negative returns while only life insurance (1.0 per cent ) sector exerted some positive return on the bourse today.
The port city bourse, CSE, also, settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) marginally declined by 129.4 and 214.1 points respectively.
