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Stocks opened sharply lower on Thursday as investors went on selling spree with the stocks that were downgraded to the Z category.
The Dhaka Stock Exchange (DSE) downgraded 27 firms to the Z category for non-compliance with securities laws, in line with a directive from the securities regulator, effective from today.
Following the news, the market index tumbled more than 100 points as soon as it opened at 10:00 am. However, most of the initial losses recovered as the sessions progressed.
After the first hour of trading, the prime index of the Dhaka Stock Exchange (DSE), went down 42 points or 0.74 per cent to 5,694 at 11:00 am, when the report was filed.
The blue-chip DS30 index, a group of 30 prominent companies, also lost 12 points to 2,082 and the DSES index, which represents Shariah-based companies, shed 17 points to 1,276.
The downgraded Z category stocks dominated the top losers list with Lub-rref (Bangladesh) topped the list till then with 10 per cent loss, followed by Desh Garment, Advent Pharma, Beach Hatchery and GSP Finance.
Turnover, another important indicator of the market, stood at Tk 1.93 billion.
Of the issues traded till then, 228 advanced, 221 declined, and 30 issues remained unchanged on the DSE trading floor.
Banking sector stocks dominated the top turnover chart with SIBL being the most traded stock till then with shares worth Tk 265 million changing hands, followed by Islami bank, GIB, First Security Islami Bank and Brac Bank.
The Chittagong Stock Exchange also saw downturn with its All Shares Price Index (CASPI)—losing 63 points to stand at 15,935 while the Selective Categories Index – CSCX lost 20 points to reach 9649 till then.