Stocks tumbled at the opening on Thursday, after a three-day gain, as cautious investors went for selling shares following the news that the securities regulator lifted the floor prices of 66 companies.
The market fell sharply in the early trading, with the DSEX, the prime index of the Dhaka Stock Exchange (DSE), eroded by 64.93 points or 1.21 per cent to stand at 5,272 points within the first 30 minutes of trade.
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday withdrew the floor prices of 66 listed companies set a year ago when the market was in a free-fall caused by the first wave of the Covid-19 pandemic.
On March 19 of 2020, the stock market regulator imposed the floor prices on these issues by calculating their average prices from the preceding five days to stop the index from falling amid the pandemic.
Of the 110 companies that remained stuck in the floor prices, 66 have been withdrawn. The floor prices slapped on other companies might also be lifted in phases, BSEC officials said.
Market analysts said deepening worries of the investors over the rising coronavirus cases in the country also took a heavy toll on the struggling market.
Meanwhile, two other DSE indices also saw a sharp decline till filing of the report with the DS30 index, comprising blue chips, lost 12.70 points to reach 1,998 points and the Shariah Index (DSES) plunged 11.75 points to stand 1,202 points till then.
Turnover, another important indicator of the market, stood at Tk 1.33 billion within the first 30 minutes of trading when the report was filed at 10:30 am.
Of the issues traded till then, 222 declined, 46 advanced, and 21 issues remained unchanged on the DSE trading floor.
Provati Insurance was the most traded stock till then with shares worth Tk 146 million changing hands, followed by Robi, Beximco Pharma, Asia Pacific Insurance, and Purabi General Insurance.
The Chittagong Stock Exchange (CSE) also saw a downward trend at the opening with the CASPI losing 75 points to stand at 15,360, also at 10:30 am.
Of the issues traded till then 77 declined, 28 gained, and 3 remained unchanged with Tk 51 million in turnover.