Stocks open lower as sell-off continues

FE ONLINE REPORT | Sunday, 22 May 2022

The market opened lower on Sunday as the jittery investors continued to sell-off their holdings amid growing concerns over the economic situation.

Following the previous seven days’ major fall, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 27.34 points or 0.43 per cent to stand at 6,230, after the first hour of trading at 11:00am.

Two other indices also saw downward trend till then with the DS30 index, comprising blue chips, losing 5.10 points to reach 2,311 and the Shariah Index (DSES) fell 5.44 points to stand at 1,377.

Turnover, another important indicator of the market, remained low and amounted to Tk 1.48 billion after the first hour of trading at 11:00am.

Market operators said multiple factors such as soaring inflation, record surge in imports, imbalance in current account balance, shortage of dollar supply and local currency devaluation coupled with rising cost of business have together hurt investors’ sentiment.

The inflation rate is rising quickly owing to global commodity market volatility. Food and oil prices have been impacted by the Ukraine-Russia war and there is no certainty on when the war will end, said a merchant banker, wishing not to be named.

The stock market remained unstable due to rising inflation which reduced the investors’ buying power and the depreciation of the local currency fueling foreign investors’ sales, he said.

Of the issues traded till then, 216 declined, 109 advanced, and 45 issues remained unchanged on the DSE trading floor till then.

Beximco was the most traded stock till then with shares worth Tk 106 million changing hands, closely followed by JMI Hospital Requisite Manufacturing, BSC, Shinepukur Ceramics and Delta Life Insurance.

The Chittagong Stock Exchange also saw a downward trend till then with its All Shares Price Index (CASPI)—losing 96 points to stand at 18,342 the Selective Categories Index – CSCX shed 58 points to reach 11,006 at 11:00am.

Of the issues traded till then 102 declined, 17 advanced, and 20 remained unchanged with Tk 32 million in turnover.

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