The Financial Express
Swasti Lankabangla Swasti Lankabangla

DSEX slumps to 30-month low amid panic sell-offs

| Updated: July 17, 2019 10:44:48

DSEX slumps to 30-month low amid panic sell-offs

The prime index of the Dhaka Stock Exchange (DSE) tumbled to more than 30 months low on Monday as worried investors continued their selling binge fearing further fall.

DSEX, the prime index of the DSE, plunged 88 points or 1.70 per cent to settle at 5,091 on Monday. DSEX eroded 289 points in the past seven consecutive sessions.

It was the lowest level of DSEX in more than 30 months since January 01, 2017 when DSEX was 5,083.

A good number of retail investors, under the banner of ‘Bangladesh Pujibazar Biniogkari Oikya Parishad,’ staged demonstration in front of the DSE building protesting the contitious fall.

The investors demanded immediate resignation of M Khairul Hossain, the chief of the capital market watchdog, for his failure to bring back normalcy in the market.

Market analysts said investors who have already been grappling with several issues such as penalty tax on listed companies and gas price hike got panicked by the news of liquidation and trading suspension of People’s Leasing and Financial Services (PLFS).

Two other indices also ended lower. The DS30 index, comprising blue chips, lost 34.75 points to finish at 1,818 and the DSE Shariah Index also fell 24.38 points to close at 1,166.

 “The government’s move to liquidate People’s Leasing coupled with the gas price hike prompted investors to sell-offs,” said a leading broker.

Turnover, another important indicator of the market, stood at Tk 3.06 billion, which was 14 per cent lower than the previous day’s turnover of Tk 3.54 billion.

The losers took a strong lead over the gainers as out of 352 issues traded, 303 closed lower, 37 advanced and 12 issues remained unchanged on the DSE trading floor.

Grameenphone (GP) topped the turnover chart with 374,511 shares worth Tk 123 million changing hands.

The other turnover leaders were Monno Ceramic, Fortune Shoes, Square Pharmaceuticals and United Power.

A total number of 97,969 trades were executed in the day’s trading session with trading volume of 109.46 million securities.

The market capitalisation of the DSE also fell to Tk 3,787 billion on Monday, from Tk 3,858 billion in the previous session.

SEML FBLSL Growth Fund was the day’s best performer, posting a gain of 9.32 per cent while BIFC was the worst loser, losing 10 per cent.

The port city bourse, Chittagong Stock Exchange, also ended lower with its CSE All Share Price Index – CASPI –slumping by 261 points to settle at 15,619 and the Selective Categories Index - CSCX –losing 157 points to finish at 9,487.

Here too, the losers beat gainers, as 220 issues closed lower, 40 ended higher and 18 remained unchanged on the CSE trading floor.

The port city bourse traded 6.22 million shares and mutual fund units worth Tk 144 million in turnover.


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