Stocks nosedive as fear grips investors on BSEC-IMF meeting upshots

Breaking the recent trading sessions’ upward momentum, Dhaka stocks nosedived Monday as investors opted to stay watchful regarding the outcomes of yesterday’s meeting held between the BSEC and IMF on Bangladesh’s capital market issues.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dipped 22.74 points or 0.35 per cent to settle at 6,393 against 6,416 points in the previous trading session.

The DSES, the Shariah-based index, dropped 4.35 points or 0.30 per cent to 1,401, and the DS30, the blue-chip index, shed 12.87 points or 0.57 per cent to close at 2,245.

Turnover, another crucial market indicator, stood at Tk 1,235 crore against the figure of Tk 1,275 crore in the previous session.

The market started with a downward trend and failed to turn around till the end of the session since investors’ sell pressure was prevalent on some major scrips, being induced by a bleak market outlook amidst ongoing macroeconomic adversities, said EBL Securities, a stockbroker, in its daily market review.

Besides, the apprehension of an unfavorable outcome from the meeting held between the BSEC and IMF further weakened investors’ sentiments, it added.

Moreover, the recent dismal earnings disclosures from a majority of firms also spiraled investors’ concerns, prompting them to partially liquidate their holdings, EBL Securities commented.

On the sectoral front, the IT sector topped the turnover chart with a contribution of 19.8 per cent to the total turnover, followed by the pharma & chemical (15.6 per cent) and miscellaneous (12.1 per cent) sectors.

Most of the sectors displayed dismal returns in the prime bourse with the jute sector suffering the most with a loss of 3.1 per cent, followed by life insurance (2. Per cent) and services (2 per cent).

Out of the 389 issues traded, 49 advanced, 97 declined and 243 did not see any price movement on the DSE trading floor.

The port city bourse, Chittagong Stock Exchange (CSE), also closed lower with its two major indices – the selected indices (CSCX), and the all-share price index (CASPI) – declining by 23.8 points and 39.1 points respectively.