Stocks see sharp fall for 3rd day

Dhaka stocks on Wednesday extended losses for the third consecutive day amid declining turnover as a recent fuel price hike continued to weigh on investor confidence.

The benchmark index DSEX lost 1.24 per cent or 78 points to end at 6,180.

The blue-chip index DS30 was down over 1 per cent or 26 points to 2,210 while the Shariah-based index DSES fell 1 per cent or 13 points to 1,354.

Turnover decreased by 26.21 per cent to Tk 800 crore backed by the textile sector that accounted for 19.23 per cent of the total turnover.

All the large-cap sectors posted negative performance for the day, according to the BRAC EPL.

EBL Securities, in its post-market commentary, said, “The decision to drastically raise the price of fuel is adding to the strain on the economy, which has already been struggling with rising inflation and a significantly depreciating local currency.”

Investors are becoming more worried as the profitability of the listed companies may suffer because of rising production costs. Disruption of the power supply along with the decision to close operations for one day a week is adding to the concern, it said.

In November of last year, the government increased the price of diesel and kerosene by Tk 15 to Tk 80 per litre. Nine months later, the fuel oil price announced by the Energy Division on Friday night was the highest in the country's history.

As per the new prices effective from Saturday, a litre of diesel and kerosene now costs Tk 114 an increase from Tk 80, octane costs Tk 135 per litre from Tk 89, and petrol costs Tk 130 from Tk 86.

Soon after the energy ministry announced the prices, there was a huge reaction across the country. People protested the record price hike on social media. Bangladesh’s petrol pumps temporarily stopped selling fuel oil, causing chaos in many parts of the country.

Engineering experienced the highest loss of 1.55 per cent followed by NBFI at 1.36 per cent, Fuel & Power at 0.95 per cent, Pharmaceuticals at 0.92 per cent, Food & Allied 0.76 per cent, Bank 0.49 per cent, and Telecommunications at 0.07 per cent, respectively.

Out of the 386 issues traded, 26 advanced, 279 declined, and 81 remained unchanged at the Dhaka bourse.

The port city bourse, the Chittagong Stock Exchange (CSE), is also settled in red terrain. The selected indices (CSCX) and the All Share Price Index (CASPI) marginally declined by 123.3 and 205.6 points, respectively.