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The key index of the Dhaka Stock Exchange (DSE) fell below the ‘psychological’ threshold of 5000-mark after four months on Wednesday as jittery investors dumped their holdings amid a lack of clear direction ahead of the national election.
Market analysts said the lingering confidence crisis amid prolonged market volatility induced cautious investors to continue reducing their exposure to equity investments and stay on the sidelines for an awaited revival.
As the market selloff continues, the DSEX, the prime index of the DSE, lost 32 points or 0.64 per cent to settle at 4,987, the lowest in four months since July 7 this year. The DSEX lost 130 points in the past four consecutive sessions.
The investors had been suffering from a confidence crisis for a long time amid a depressed market outlook, said a stockbroker.
Stock investor pessimism was exacerbated amid lingering political uncertainties surrounding the forthcoming national election. Broad-based sell-offs emerged from the later part of the session as investors adopted a defensive stance, dragging the benchmark index to four-month low, he said.
The DS30 index, a group of 30 prominent companies, also shed 6 points to 1,940, while the DSES index, which represents Shariah-based companies, lost 11 points to 1,044.
Market liquidity continued to remain subdued as total turnover remained below Tk 5 billion and amounted to Tk 4.85 billion as against Tk 4.53 billion in the previous session.
Losers outnumbered the gainers, as out of 400 issues traded, 267 saw price correction, while 70 others gained, and 63 issues remained unchanged on the DSE floor.
Orion Infusion was the most traded stock, with shares worth Tk 336 million changing hands.
The Chittagong Stock Exchange also ended lower, with its All Shares Price Index (CASPI) losing 106 points to 14,028, while the Selective Categories Index – CSCX lost 69 points to 8,652.