Stocks keep bleeding amid confidence crisis

The prime index of the Dhaka Stock Exchange (DSE) tumbled below 5,700-mark on Wednesday after nearly three years as jittery investors continued to dump their holdings, fearing further fall.

After hitting a fresh three-year-low the previous day, the market opened on a positive note this morning when the key index managed to gain 10 points in the first two hours. But heavy selling pressure in the late hours wiped out the early gains.

The key index of the Dhaka Stock Exchange (DSE), finally slid more than 56 points or 0.96 per cent to 5,579, which was the lowest since May 4, 2021.

The DSES Index, which represents Shariah-based companies, also shed 6 points to 1,229. However, the blue chip index DS30, a group of 30 prominent companies, advanced 4 points to 1984.

Stocks continued to bleed owing to the prolonged depressed market sentiment, with investors’ massive selloffs being predominant in the majority of scrips as they preferred to safeguard their funds from further erosion, said EBL Securities.

The market tussle between buyers and sellers continued till mid-session. However, buyers subsequently regained their dominance and led the market to prolong its downtrend with no major catalyst for a strong turnaround.

Turnover, a crucial indicator of the market, was Tk 6 billion, slightly up from the previous day’s Tk 5.97 billion amid a selling pressure.

Out of the 395 issues traded, 274 declined, 79 advanced, and 41 remained unchanged on the DSE trading floor.

Newly-listed Asiatic Laboratories dominated the turnover chart, with shares worth Tk 354 million changing hands, followed by Orion Infusion, Lovello Ice-Cream, Malek Spinning and Golden Son.

The Chittagong Stock Exchange also ended lower, with its All Shares Price Index (CASPI) shedding 174 points to 15,980 and the Selective Categories Index (CSCX) losing 97 points to 9,622.

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