Tuesday, May 07, 2024
DSEX, the key index of the Dhaka Stock Exchange (DSE), dipped just below the 5,900 mark on Monday, falling by 70 points to a 34-month low of 5,898 points due to the subdued market sentiment as investors remained apprehensive over concerns regarding the market outlook.
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.
Market turnover on Monday also slightly decreased by 5.4 per cent to Tk 486 crore,from the previous session’s Tk 510 crore.
DSEX lost 69.81 points or 1.17 per cent and closed at 5,898.24. The last time the DSEX was at this level was on May 25, 2021, when it stood at 5,884 points at the end of trading.
The blue-chip index,DS30, and the Shariah-based index,DSES,also closed the day at 2,042.62 and 1,286.25 points, respectively.
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 confidence is yet to be restored owing to concerns regarding the market outlook, EBL Securities said in its daily market review.
Moreover, it said,a portion of investors opted to remain on the sidelines, waiting for a clear indication of the market momentum ahead.
BRAC EPL Stock Brokerage in its daily market review said that all the large-cap sectors posted negative performance on the day. NBFI experienced the highest loss of 2.76 per cent. Block trades contributed 1.2 per cent of the overall market turnover. Golden Son Ltd was the most traded share with a turnover of Tk 20 crore.
Out of the 396 issues traded, 33 advanced, 326 declined and 37 remained unchanged at the Dhaka bourse.
Market insiders said that 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.
Low-cap stocks dominated the turnover list.Golden Son became the most traded share, with shares worth Tk 20 crore changing hands, followed by Fu-Wang Ceramic, Taufika Foods and Lovello Ice-Cream, and Central Pharma.
Newly listed Asiatic Laboratories was the day’s top gainer, posting a 9.79 per cent rise, while Golden Son was the worst loser, shedding 9.05 per cent.
The Chittagong Stock Exchange (CSE) also settled on red terrain on Monday, as the selected indices, CSCX, and All Share Price Index, CASPI, declined by 96.5 and 161.3 points, respectively.
Of the issues traded, 157 declined, 46 advanced, and 24 remained unchanged on the CSE trading floor at the end of the day.
The port city bourse traded 50.17 lakh shares and mutual fund units with a turnover value of about Tk 12.97 crore.
Meanwhile, as per the Bangladesh Securities and Exchange Commission (BSEC), the floor price of Robi will be withdrawn after the record date, i.e., March 18, 2024, with effect from Tuesday. However, the upper and lower limits of the circuit breaker will be applicable as per BSECorder.
