Dhaka stocks witnessed another fall on Monday as increased sell pressure, with the index remaining below the 5,000-mark despite intermittent upward movement observed in early-session trading.
DSEX, the key index of the Dhaka Stock Exchange (DSE), lost 66.87 points or 1.35 per cent and closed at 4,898.53. The blue-chip index DS30 and the Shariah-based index DSES closed at 1,805.89 and 1,087.46 points, respectively.
Most of the large-cap sectors posted negative performance on the day.
Meanwhile, trading activities remained stagnant, with market turnover reaching Tk 357 crore as against Tk 304 crore in the previous session.
Besides, the investors of Dhaka Stock Exchange (DSE) formed a human chain in front of the DSE building in Motijheel on Monday, protesting the continuous fall in share prices.
The protesters, under the banner of Bangladesh Pujibadi Oikya Parishad, demanded the authorities bring stability to the stock market as indexes reached their lowest level on Sunday in over four months.
The protesters also demanded the resignation of Chairman Bangladesh Securities and Exchange Commission (BSEC) Khondoker Rashed Maqsood.
On Sunday, the Dhaka bourse plunged to a level not seen in over four years, with the index dipping below the 5,000 marks.
Royal Capital said in its daily market commentary that the index slipped as the investors closed their position after sustaining the points below the 5000-mark.
EBL Securities said in its daily market commentary that the recent sustained downward trajectory has raised concerns, prompting the regulatory commission to establish a committee in the interest of investor protection.
Despite the regulator’s effort, the market sentiment remains cautious, as the outlook is further dampened by expectations of weaker-earnings for the July-September quarter, reducing the possibility of a short-term recovery, it said.
Three sectors out of 19 were the gainers and 16 sectors were on the losing side. Of the 398 scrips traded, 105 advanced, 246 declined and 46 remained unchanged.
STANDBANKL topped the turnover chart. KPCL was the top gainer, whereas GENEXIL was the top loser. One stock was traded at the floor price.
In the block market, shares of Tk 24 crore were transacted, representing a turnover of 6.75 per cent. The SME index, DSMEX, decreased by 6.44 points, and the market generated a Tk 3.3 crore turnover, a 28 per cent increase from the previous session.
According to the Royal Capital Financial Portal, SQUARPHARMA and ISLAMIBANK contributed the most to the gains and the losses of the DSEX index on the day and the bear dominated the market while the bull tried to take over the control in the middle.
The outlook remains grim, compounded by the expectations of disappointing earnings for the July-September quarter, narrowing the possibility of a short-term rebound in the declining capital market.
The relentless bearish spell remained dominant throughout the session, with the majority of scrips exerting significant price corrections due to the enduring pessimism pervading the trading floor, leaving investors in a state of persistent uncertainty.
On Sunday, the Bangladesh Securities and Exchange Commission (BSEC) formed a four-member inquiry committee to identify the reasons behind the recent market fall.
The members of the committee are Mohammad Shamsur Rahman, additional director of the BSEC, Muhammad Oarisul Hasan Rifat, deputy director of the BSEC, Mahfuzur Rahman, assistant general manager of the Dhaka Stock Exchange (DSE), and Kazi Minhaz Uddin, assistant general manager of the Central Depository of Bangladesh.
The committee will complete the enquiry and submit a report to the commission within 10 working days.
