DSEX, the key index of the Dhaka Stock Exchange (DSE), lost a massive 104 points, or 1.92 per cent, on Sunday as investors went on panic sell-offs right from the start of the trading, fearing further fall amid a deepening political crisis as student protesters started a non-cooperation movement that led to deadly clashes, mobile internet shut down and curfew resumption.
Violent unrest gripped the entire country since Sunday morning as student protesters, under the banner of Students Against Discrimination Movement, and general people who expressed solidarity with them clashed with police and ruling party supporters, leaving dozens dead and hundreds injured.
The market turnover decreased by 62 per cent and closed at Tk207.8 crore. The blue-chip index, DS30, and the Shariah-based index, DSES, closed at 1,859.03 and 1,143.85 points, respectively. All the large-cap sectors also posted negative performances on the day.
All 19 sectors were on the losing side. Of the 398 scrips traded, 6 advanced, 372 declined and 19 remained unchanged at DSE.
UNILEVERCL topped the turnover chart. SHYAMPSUG was the top gainer while ZEALBANGLA was the top loser. Six stocks were traded at the floor price. In the block market, shares of Tk 61.9 crore were transacted, representing a turnover of 29.79 per cent.
The SME index, DSMEX, decreased by 46.48 points, and the market generated a Tk 6 crore turnover, a 68 per cent decrease from the previous session.
According to the Royal Capital Financial Portal, UNILEVERCL and SQURPHARMA contributed the most to the gains and losses of the DSEX on Sunday, respectively, and the market was negative from the start.
Market insiders said that the presence of investors on the trading floor was also thin due to the prevailing war-like situation.
“A stable political situation is a prerequisite to holding investors' confidence in the market. We were already in a challenging atmosphere, and the recent unrest has further fuelled the crisis," said DSE Brokers Association president Saiful Islam.
Sayedur Rahman, the former president of the Bangladesh Merchant Bankers Association, told The Business Post, “During any unstable situation in the country, a joint policy involving Bangladesh Bank, Bangladesh Securities and Exchange Commission and IDRA is necessary to prevent any liquidity issues in the capital market. While Bangladesh Bank can make decisions for the discipline of the banking sector, it should also consider the impact on the capital market. Similarly, BSEC needs its own policies to keep the capital market dynamic.”
On Sunday, the Chittagong Stock Exchange also ended sharply lower, with the CSE All-Share Price Index, CASPI, losing 193.19 points to settle at 14,926.05 and the Selective Categories Index, CSCX, shedding 117.94 points to close at 8,995.37.
The port city bourse traded 9,59,000 shares and mutual fund units with turnover value worth about Tk 3.33 crore.
Of the issues traded, 154 declined, 10 advanced and 11 issues remained unchanged at CSE.
