Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The market opened sharply lower on Sunday as the jittery investors continued to sell-off their holdings as investors went for panic sell-offs amid growing concerns over the economic uncertainties.
Following the previous week’s major fall, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by more than 61 points or 1.12 per cent to stand at 5,455, after the first hour of trading at 11:00 am, when the report was filed.
Price erosion of selective large-cap stocks such as Power Grid, BAT Bangladesh, Walton, Robi and LafargeHolcim contributed most to the major index fall.
Two other indices also saw major setbacks at opening with the DS30 index, comprising blue chips, losing 19 points to 1955 while the Shariah Index (DSES) fell 14 points to 1,197 till then.
Turnover, another important indicator of the market, amounted to Tk 1.63 billion after the first hour of trading.
The investors trimmed their exposure to the stock market owing to lingering economic uncertainties fuelled by inflation pressure and a declining forex reserve while possible capital gain tax over Tk 4 million in the next budget exacerbated the market sentiment, experts said.
Moreover, investor sentiment hit a fresh blow due to potential interest rate hikes following the latest policy rate increase by 50 basis points amid a tightened money market.
The rising interest rates already turned fixed-income instruments more lucrative compared to the equity market, while a further rate hike is likely to worsen the situation.
“The investors are in a very tough situation as they are witnessing continuous erosion of their portfolios,” said a leading broker.
Of the issues traded till then, 296 declined, 37 advanced, and 38 issues remained unchanged on the DSE trading floor till then.
Beach Hatchery was the most traded stock till then with shares worth Tk 122 million changing hands, closely followed by eGeneration, Lovello Ice-cream, Orion Pharma and Best Holdings.
The Chittagong Stock Exchange also saw a sharp fall till then with its All Shares Price Index (CASPI)—losing 94 points to stand at 15,912 the Selective Categories Index – CSCX shed 70 points to 9567, also at 11:00 am.