DSEX dips below 6,000-mark on selling frenzy

FE Online Report | Published: October 23, 2017 16:09:32 | Updated: November 12, 2017 14:58:49


Stocks witnessed a major setback Monday, with core index of the premier bourse falling below 6,000-mark after two months, as risk-averse investors went on selling spree.

Market insiders said significant downward movement of the large-cap sectors such as bank, financial institutions, power and food & allied caused such drop in index.

“Recent earnings and corporate declarations from several listed companies have failed to satisfy investors’ expectation that resulted into selling frenzy,” said an analyst at a leading brokerage firm.

The market started on a downward note and the trend continued till end of the session with no sign of reversal, finally ended more than 59 points lower.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 59.25 points or 0.98 per cent to settle at 5,982, the lowest level in nearly two months since August 30.

The two other indices -- the DS30 index and the DSE Shariah Index (DSES) – also followed the suit to close at 2,175 and 1,325 points, after losing 14.74 points and 7.43 points respectively.

Turnover, the important indicator of the market, also came down to Tk 5.23 billion, which was 3.68 per cent lower than the previous day’s turnover of Tk 5.43 billion.

More than 76 per cent companies’ share price fell on the day as out of 332 issues traded, 223 closed lower, 68 closed higher and 41 remained unchanged on the DSE floor.

BBS Cables emerged as turnover leader with about 1.45 million shares of Tk 208 million changing hands, closely followed by Aamra Networks, LankaBangla Finance, Grameenphone and IFAD Autos.

Safko Spinning was the day’s highest gainer, posting a 5.92 per cent rise, while Zeal Bangla Sugar Mills was the worst loser, plunging 9.86 per cent.

The port city bourse, the Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index - CSCX – losing 105 points to settle at 11,216.

Losers beat gainers as 158 issues closed lower, 52 closed higher and 23 remained unchanged on the CSE.

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