DSEX hits 11-month low as sell-off continues

FE ONLINE REPORT | Sunday, 22 May 2022

Stocks witnessed yet another major setback on Sunday, with the key index of the Dhaka bourse sinking below the 6,200-mark after 11-month, as the jittery investors continued to sell off to exit from the market.

The market fell from the beginning of the session as investors, particularly the retail ones, went into panic sales, plunging below the 6,200-mark instantly at the opening.

Finally, DSEX, the key index of the Dhaka Stock Exchange, slid 115.56 points or 1.84 per cent to settle at 6,142, the lowest in nearly 11 months since June 29, 2021. DSEX shed over 555 points in the past eight straight sessions.

Two other indices also saw massive erosions. The DS30 index, comprising blue chips, slumped 39.51 points to finish at 2,277 and the DSE Shariah Index (DSES) shed 21.31 points to close at 1,361.

Turnover, a crucial indicator of the market, stood at Tk 6.79 billion, which was 1.64 per cent higher than the previous day’s tally of Tk 6.68 billion.

Market operators said multiple factors such as soaring inflation, record surge in imports, imbalance in the current account balance, shortage of dollars supply and rise in business cost have together hurt investors’ sentiment.

The stock market regulator is trying to increase institutional fund flows to the market, but failed to revive the market sentiment, he said.

All the sectors faced selling pressures, leading to the share price erosion of more than 91 per cent of stocks. Out of 379 issues traded, 345 declined, 21 advanced and 13 issues remained unchanged.

Southeast Bank was the most-traded stock with shares worth Tk 702 million changing hands, closely followed by IPDC Finance, Beximco, Delta Life Insurance and Bangladesh Shipping Corporation.

The Chittagong Stock Exchange (CSE) also saw a massive decline with the CSE All Share Price Index (CASPI) shedding 382 points to settle at 18,057 and its Selective Categories Index (CSCX) losing 229 to close at 10,835.

Of the issues traded, 238 declined, 16 advanced and 22 issues remained unchanged on the CSE trading floor.

The port city bourse traded 7.23 million shares and mutual fund units with a turnover value of Tk 170 million.

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