Stocks keep bleeding for seven days

DSEX sinks below 6300-mark after 10-month 

FE ONLINE REPORT | Thursday, 19 May 2022

Stocks extended the losing streak for the seven straight days on Thursday as the jittery investors continued to dump their holdings despite the regulatory efforts to stop the market fall.

The worry of economic instability and uncertainties of the coming days due to the rising inflations prompted investors to sell off, market insiders said.

Following the previous six days’ major fall, the market opened sharply lower and tried to recover in the mid-session. But late hours’ selling pressure kept the market down, eventually ending over 51 points lower.

DSEX, the key index of the Dhaka Stock Exchange (DSE), slid 51.66 points or 0.81 per cent to settle at 6,258, the lowest in more than 10 months since July 12, 2021. DSEX shed over 440 points in seven straight sessions.

Two other indices also ended lower. The DS30 index, comprising blue chips, fell 19.80 points to finish at 2,316 and the DSE Shariah Index (DSES) shed 8.46 points to close at 1,383.

Turnover, a crucial indicator of the market, also fell further to Tk 6.68 billion, which was 12 per cent lower than the previous day’s tally of Tk 7.62 billion.

Market operators said some factors relating to the country’s macroeconomic matters, including soaring inflation, might together hurt investors’ sentiment.

Inflation shot up to 6.29 per cent in April – the highest in 18 months – amid persistently rising food and non-food prices, said the Bangladesh Bureau of Statistics (BBS) on Wednesday. In March, overall inflation was 6.22 per cent.

The stock market regulator took some market supportive measures, including increasing funds flow in the market, but failed to revive the market sentiment, they said.

Out of 380 issues traded, 263 declined, 67 advanced and 50 issues remained unchanged.

Beximco was the most-traded stock with shares worth Tk 532 million changing hands, closely followed by Islami Bank, Shinepukur Ceramics, JMI Hospital Requisite Manufacturing, and Bangladesh Shipping Corporation.

The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index (CASPI) shedding 135 points to settle at 18,439 and its Selective Categories Index (CSCX) losing 82 points to close at 11,064.

Of the issues traded, 208 declined, 54 advanced and 26 issues remained unchanged on the CSE trading floor.

The port-city bourse traded 8.45 million shares and mutual fund units with a turnover value of Tk 278 million.

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