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The Dhaka bourse on Sunday experienced a moderate loss in the broad index as the majority of blue-chip stocks declined amid day-long selling pressure.
Of the 30 blue-chip stocks, 28 declined, while the remaining two companies-Beacon Pharmaceuticals and Heidelberg Materials Bangladesh-advanced marginally on the Dhaka Stock Exchange (DSE).
As a result, the DS30 index also experienced a moderate loss of 0.97 per cent, or 18.74 points, to close at 1,896 points.
The day's top index draggers included Islami Bank Bangladesh, Pubali Bank, Square Pharmaceuticals, and Walton Hi-Tech Industries.
Of the 392 issues traded on Sunday, 38 advanced, 313 declined, and the remaining 41 were unchanged on the DSE.
Because of corrections experienced by the majority of stocks, the market capitalisation of all sectors, except for corporate bonds, declined.
When asked, market operators were unable to speak about specific reasons behind the day's fall.
They said some factors, including the crisis in Iran and the ongoing bitter relationship between Bangladesh and India, might have fuelled the selling pressure.
"But none of such claims seem relevant to me. In fact, I'm unable to understand such market movements," said Md Ashequr Rahman, managing director of Midway Securities.
Echoing him, a shareholder director of the Dhaka bourse, Minhaz Mannan Emon, said they were also unable to guess the factors that caused the correction.
A body formed by the finance ministry recently recommended shifting long-closed, loss-making, and non-dividend-paying companies from the main board of the stock exchanges to a separate trading platform under a new 'R' category.
Rahman said if the proposal is executed, many junk stocks will be removed from the main board. "It may be a reason behind the selling pressure."
The DSE broad index, DSEX, exhibited volatility from the very beginning of Sunday's session.
It showed a timid recovery stance during mid-session, but soon faded away and finally closed at 4,939 points with a loss of 1.17 per cent, or 59 points.
A market review by EBL Securities said the DSE failed to provide any respite to investors as stocks again turned red, with widespread selling pressure from the opening bell as sentiment was dragged down by rumours of stock category changes, concerns over the nationwide gas crisis, and rising geopolitical tensions.
Operators said the trading platform has now become very fragile as stocks experience selling pressure following appreciation even for a single session.
The majority of the day's gainers were small-cap and junk stocks. As a result, they failed to minimise the correction experienced by large-cap companies, especially blue-chip stocks.
Among the junk stocks that topped the gainers' list were First Finance, Familytex (BD), Zaheen Spinning, and Union Capital.
Prof Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB), said the equity market would not thrive until interest rates remain high.
He said the country's production side has become weak following persistently high interest rates. Consequently, revenue collection targets set by the National Board of Revenue (NBR) remain unachieved.
On the other hand, only some banks have been reaping the benefits of high interest rates through investments in Treasury bonds.
"In this situation, the country's equity market cannot see increased investor participation," Prof Ahmed said.
At the end of the session, the DSE featured a turnover worth Tk 4.12 billion, 4 per cent less than the previous session.
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