DSE’s benchmark index falls below 6,300-mark again

The country’s stock market from the last month’s second half to the second week of the current month remained extraordinarily buoyant with receiving huge funds from investors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), reached a six-month high of 6,306 points on May 23, and then continued growing steadily till June 4.

The DSE’s broad index jumped to 6,366 points on June 4, the highest since November 8 last year, on the back of investors’ growing presence in the trading activity.

But the key index, except for some sessions, kept falling since then, and it again fell below the 6,300 mark again on Tuesday. Dhaka stocks, market analysts say, are dipping consistently ahead of the central bank’s monetary policy because they are in fear that the monetary policy could hurt the stock market.

Besides, jittery investors are continuing to take a cautious move by offloading their shares in apprehension of any future uncertainty regarding the market, they added.

The DSEX on Tuesday declined 11.7 points to settle at 6,299 against 6,311 in the previous trading session.

Turnover, another crucial market indicator, fell by 31.8 per cent to Tk 669 crore against the tally of Tk 981 crore in the previous session.

The life insurance sector rose 21.3 per cent to top the turnover chart, followed by pharma (12.9 per cent) and food (8.4 per cent).

The DSE’s benchmark index, according to the daily market review carried by stockbroker EBL Securities, dipped below the 6,300-mark after nearly one month as the market witnessed continuous setbacks for three straight sessions owing to the prevailing uncertainties concerning the market momentum ahead of the upcoming monetary policy statement along with the proposed changes to tax rebates on secondary market investments.

Sectors displayed mixed performance on the DSE, with the life insurance facing the highest correction of 1.8 per cent, followed by general insurance (1.6 per cent) and services (0.7 per cent).

On the other hand, the travel exhibited the highest gain of 1.5 per cent, followed by IT (0.6 per cent) and tannery (0.2 per cent).