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Stocks witnessed yet another big fall on Sunday, with the core index of the Dhaka bourse dipping below 5,500-mark after more than three years, as jittery investors continued to dump their holdings to avoid further losses.
The investors have been suffering a crisis of confidence for long and the recent free-fall of the index mounted the crisis among them, said a leading broker.
DSEX, the prime index of Dhaka Stock Exchange (DSE), finally slid more than 86 points or 1.56 per cent to settle at 5,431—the lowest level since April 27, 2021.
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.
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 blue chip index DS30, a group of 30 prominent companies, also lost more than 25 points to 1948 while the DSES Index, which represents Shariah-based companies, shed 20 points to 1,191.
“Stocks extended losing streak as investor sentiment observed a fresh blow amidst emerging external challenges arising from tightened money market conditions following the latest policy rate hike that hampered the market’s recovery,” said a leading broker.
Turnover, a crucial indicator of the market, also came down to one-month low to Tk 4.09 billion, which was 39 per cent lower than the previous day’s value of Tk 6.76 billion.
More than 88 per cent traded shares saw price fall, as out of 388 issues traded, 347 saw price fall, 22 managed to end higher while 19 remained unchanged on the DSE trading floor.
Beach Hatchery became the most traded shares with shares worth Tk 189 million changing hands, followed by eGeneration, ICB AMCL Sonali Bank 1st Mutual Fund, Orion Infusion and Orion Pharma.
Shepherd Industries was the day’s highest gainer, posting a 9.35 per cent increase while Desh Garment was the worst loser, shedding 3 per cent.
The Chittagong Stock Exchange plunged with its All Shares Price Index (CASPI) shedding 269 points to 15,737 and the Selective Categories Index (CSCX) losing 165 points to 9,472.