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Dhaka stocks hit three-year low

DSEX drops by 352 points in the last eight sessions
Staff Correspondent
19 Mar 2024 22:52:19 | Update: 19 Mar 2024 22:52:19
Dhaka stocks hit three-year low

The key index of the Dhaka Stock Exchange (DSE) extended its free fall on Tuesday as panic-driven sell pressure continued to dominate the market amid subdued market sentiment and rising tensions over the market outlook.

DSEX lost 84.14 points or 1.43 per cent and closed at 5,814.10 at the end of trading. The blue-chip index, DS30, and the Shariah-based index, DSES, closed at 2,020.11 and 1,268.38 points, respectively.

Meanwhile, market turnover decreased by 4.3 per cent to Tk 465 crore, from the previous session’s Tk 490 crore.

The market witnessed a free fall, failing to recover from the enduring pessimism pervading the trading floor, as a result of lasting concerns stemming from sudden policy changes, which have significantly impacted investor sentiment, market insiders said.

In the last eight sessions, the DSEX dropped by 352 points. On Monday, DSEX lost 69.81 points or 1.17 per cent and closed at 5,898.24.

Robi played a key role in Tuesday's downfall, as the fifth-largest stock fell by 10 per cent on the first day after the removal of the floor price.

Shares of Robi Axiata declined 10 per cent in the morning session after the regulator lifted the floor price restrictions on the stock. Its shares nosedived to Tk 27 from its previous price of Tk 30 per share. The circuit breaker's upper and lower limits will apply to Robi as per the regulator's order.

The relentless bearish spell has been prolonged for continuous sessions as wary investors continued their selling spree to protect their funds from the ailing market and remain on the sidelines until there is any clear indication regarding the market momentum, EBL Securities said in its daily market review.

Market insiders said the situation has been exacerbated by the shortened trading hours during Ramadan and the anticipation of fund withdrawals ahead of Eid. Market volatility persists as market confidence is yet to be restored owing to concerns regarding the market outlook.

Moreover, a portion of investors opted to remain on the sidelines, waiting for a clear indication of the market momentum ahead, they said.

BRAC EPL Stock Brokerage in its daily market review said that all the large-cap sectors posted negative performance on the day. Telecommunication experienced the highest loss of 3.46 per cent while Block trades contributed 3.4 per cent of the overall market turnover.

Of the 396 issues traded, 41 advanced, 315 declined and 40 remained unchanged at the Dhaka bourse.

Market insiders said the jittery investors continued to dump their holdings to avoid further erosion of their portfolio as the prolonged bearish trend frustrated them to put in fresh funds.

The market was already bearish after the withdrawal of ‘floor price’ from the largest and second-largest market-cap stocks, while the rising interest rate coupled with holy Ramadan kept investors reluctant to put fresh funds into stocks.

The Chittagong Stock Exchange (CSE) also settled on red terrain on Tuesday as the selected indices, CSCX, and All Share Price Index, CASPI, declined by 165.0 and 275.2 points, respectively.

Of the issues traded, 170 declined, 36 advanced and 12 issues remained unchanged on the CSE trading floor.

The port city bourse traded 53.81 lakh shares and mutual fund units with a turnover value of Tk 16.83 crore.