Stocks tumble, ending 2-day rally

Dhaka stocks slumped on Wednesday, breaking a two-day winning streak, as bleak macroeconomic outlook continued to spook investors.

The benchmark index DSEX fell 1.21 per cent or 74 points to close at 6,038, after gaining almost 60 points in the previous two days.

The blue-chip index DS30 was down 1 per cent or 14 points at 1,319 and the Shariah-based index DSES declined over 1 per cent or 27 points at 2,162.

The DSE turnover decreased by 7.11 per cent to Tk 778 crore backed by banking sector that accounted for nearly 40 per cent of the total turnover.

“Equity indices of Dhaka bourse ended in red, after a single day break, as the jittery investors continued to dump equities riding on the fear of global economic slowdown that led to a bleak economic outlook for the country as well,” said EBL Securities.

The market started off with a dominant sell pressure right from the start of the trading session that continued throughout the day, resulting from the rising tension regarding the weak macroeconomic cues within the country while the IMF forecasts gloomy and uncertain world economic outlook due to escalating inflation in the major economies, it said.

Moreover, the IMF’s concern regarding the misclassification in reporting the country’s foreign exchange reserve has also spiraled investors’ concerns.

All the large-cap sectors posted negative performance. NBFI experienced the highest loss of 1.67per cent followed by engineering (-1.26 per cent), food & allied (-1.20 per cent), fuel & power (-1.08 per cent), bank (-1.02 per cent), pharmaceutical (-0.85 per cent), and telecommunication (-0.55 per cent), respectively.

Out of the 386 issues traded, 17 advanced, 338 declined, and 31 remained unchanged on the DSE.

The Chittagong Stock Exchange (CSE) also plummeted with the CSE All Share Price Index (CASPI) shedding 175 points to settle at 17,797 and the Selective Categories Index (CSCX) plunging 104 points to close at 10,662.

Of the issues traded, 229 declined, 26 advanced and 21 issues remained unchanged on the CSE.