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The market opened with a downward trend on Monday as the jittery investors continued to sell-off their holdings amid growing concerns over the economic uncertainties.
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.
Following the previous day's fall, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by more than 19 points or 0.37 per cent to 5,214, after the first hour of trading at 11:00 am, when the report was filed.
Price erosion of selective large-cap stocks dragged the index fall.
Two other indices also saw major setbacks at opening with the DS30 index, comprising blue chips, losing 14 points to 1852 while the Shariah Index (DSES) fell 3 points to 1,134 till then.
Turnover, another important indicator of the market, reamined low and amounted to Tk 1.18 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 5 million in the next budget exacerbated the market sentiment.
Besides, 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.
Of the issues traded till then, 208 declined, 96 advanced, and 60 issues remained unchanged on the DSE trading floor till then.
Central pharma was the most traded stock till then with shares worth Tk 88 million changing hands, closely followed by eGeneration and Asiatic Lab.
The Chittagong Stock Exchange also saw fall till then with its All Shares Price Index (CASPI)—losing 33 points to stand at 14,985 the Selective Categories Index – CSCX shed 20 points to 9013, also at 11:00 am.