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Fear of political crisis sends stocks down

Staff Correspondent
09 Dec 2022 00:00:00 | Update: 09 Dec 2022 10:15:57
Fear of political crisis sends stocks down

After two days of slim recovery, Dhaka stocks tumbled again on Thursday as looming political turbulence as well as the ongoing macroeconomic tensions battered investors’ confidence to put fresh funds in the market.

Most of the investors remained on the sidelines at the Dhaka Stock Exchange (DSE) anticipating a bleak market forecast following the resurrection of political movements alongside the existing economic sufferings, analysts say.

The DSEX, the benchmark index of the DSE, fell 9.02 points or 0.14 per cent to settle at 6,224 against 6,234 points in the previous trading session.

Among other indices, the DSES, the Shariah-based index, dropped 3.88 points or 0.28 per cent to close at 1,359, and the DS30, the blue-chip index, lost 6.73 points or 0.30 per cent to finish the session at 2,200.

Meanwhile, the Dhaka bourse witnessed a fall in investors’ participation, leading the existing liquidity crisis in the market to continue.

The turnover declined by 5 per cent to Tk 295 crore yesterday against the tally of Tk 311 crore in the previous session.

Investors’ confidence in taking long-term positions in equities weakened further, prompting them to liquidate their portfolios and remain on the sidelines in the absence of a major trigger in the market, said EBL Securities, a stockbroker, in its daily market review.

Moreover, the dismal earnings forecasts of the majority of listed companies also spiraled investors’ concerns regarding the market, it added.

The pharma & chemicals sector topped the turnover chart with a contribution of 19.5 per cent to the total turnover, followed by the food & allied (18 per cent) and the IT (14.3 per cent).

Most of the sectors displayed dismal returns at the prime bourse with the travel sector suffering the most with a loss of 1.5 per cent, followed by IT (1.3 per cent) and the paper (1.3 per cent).

On the other hand, the jute sector posted the highest return of 6.6 per cent, followed by ceramic (0.5 per cent).

Out of the 290 issues traded, 18 stocks advanced, 54 scrips declined, and 218 issues did not see any price movement on the DSE trading floor.

This refers to that more than 75 stocks remained stuck at their floor prices at the prime bourse.

The port city bourse, Chittagong Stock Exchange (CSE), also settled lower with its two major indices – the selected indices (CSCX), and the all-share price index (CASPI) – declining by 7.9 points and 13.1 points respectively.

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