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Stocks nosedived at the opening on Monday as risk-averse investors are dumping their holdings after setting records in the previous session.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), plunged by 72.62 points or 1.10 per cent to stand at 6,523 after the first 30 minutes of trading when the report was filed at 10:30 am.
Market insiders said investors became worried following the Bangladesh Bank’s decision to mop up the excess liquidity from the market and asked the scheduled banks to set the interest rate on term deposits above average annual inflation rate.
The central bank on Thursday decided to clear excess liquidity which creates instability in the economy through asset bubbles while the BB on Sunday asked all scheduled banks not to set interest rates on fixed-term deposits below the rate to protect savers.
However, a merchant banker said, the investors should not fear because the excess liquidity of the banks is not the major fund for the stock market.
Two other indices also saw a negative trend as the DS30 index, comprising blue chips, fell 29.75 points to reach 2,356 and the Shariah Index (DSES) lost 13.43 points to stand at 1,425 points till then.
Turnover, another important indicator of the market, stood at Tk 4.90 billion within the first 30 minutes of trading at 10:30 am.
Of the issues traded till then, 87 advanced, 265 declined and 19 remained unchanged on the DSE trading floor till then.
VFS Thread Dyeing was the most traded stock till then with shares worth Tk 276 million changing hands, closely followed by Beximco, Appollo Ispat, Orion Pharma, and Malek Spinning Mills.
The port city bourse – the Chittagong Stock Exchange – (CSE) saw a sharp fall at opening with CSE All Share Price Index- CASPI-losing 113 points to stand at 19,075, also at 10:30 am.
Of the issues traded till then 47 advanced, 117 declined and 18 remained unchanged with Tk 92 million in turnover.