Stocks slide after two-day as large-cap down

Stocks slid on Wednesday, snapping a two-day gain, as large-cap shares faced selling pressure after the withdrawal of the floor price.

Market analysts said the market went through volatility as most investors wanted to get rid of their holdings that were stuck on the floor for a long period of time.

Large-cap stocks such as Walton, United Power, Bangladesh Submarine Cable, Summit Power and Beacon Pharma saw major corrections, taking the market index down.

These five stocks accounted for a 25 25-point fall of the major index of the Dhaka bourse.

Following the previous two days’ rise, the market opened higher and the key index of the prime bourse rose more than 18 points within the first 10 minutes of trading, but failed to sustain amid selling pressure.

Subsequently, DSEX, the benchmark index of the Dhaka Stock Exchange, was shedding almost 50 points or 0.79 per cent to 6,236, after recovering 36 points in the past two days.

The DS30 Index, which consists of blue-chip companies, went down by 19 points to 2,139 while the DSES index, which represents Shariah-based companies, declined 11 points to 1,373.

Turnover, a crucial indicator of the market, stood at Tk 11.73 billion on the country’s premier bourse, almost the same over the previous day’s turnover of Tk 11.77 billion.

However, some bank stocks such as IFIC Bank, BRAC Bank, AB Bank and Al-Arafah Islami Bank continue to gain.

The investors put money on bank stocks ahead of dividend declaration, said a stockbroker.

He expected the market to rebound soon as most of the stock already seen big corrections. “Many stocks already came down to lucrative price levels,” he added.

The Chittagong Stock Exchange (CSE) also ended sharply lower with the CSE All Share Price Index – CASPI – losing 347 points to 17,811 while the Selective Categories Index (CSCX) shedding 209 points to close at 1,0663.

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