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Stocks slide at opening despite meeting hopes

| Updated: April 02, 2022 10:39:47

Stocks slide at opening despite meeting hopes

The market opened lower on Thursday as the risk-averse investors were selling shares ahead of holy Ramadan despite the regulator-market operator agreeing to take measures for increasing institutional participation in stock trading.

Following the previous day’s modest correction, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 20.33 points or 0.30 per cent to stand at 6,733, after two hours of trading at 12:00 noon.

Market analysts said the investors remained shaky and reluctant to make fresh investments in stocks ahead of holy Ramadan.

The securities regulator is trying to boost market liquidity through collaboration with market intermediaries, but most of the investors followed a cautious stance amid ongoing volatility in the market, said a leading broker.

Despite the regulatory efforts, a section of investors remained shaky amid the rising cost of living and potential adverse impacts on the country’s economy due to the ongoing Russia-Ukraine conflicts, said the stockbroker.

Meanwhile, two other DSE indices also saw a negative trend till then with the DS30 index, comprising blue chips, losing 2.70 points to reach 2,462 and the Shariah Index (DSES) fell 2.76 points to stand at 1,461.

Turnover, another important indicator of the market, stood at Tk 3.32 billion at 12:00 noon.

Of the issues traded till then, 101 advanced, 206 declined, and 71 issues remained unchanged on the DSE trading floor.

Low-cap companies dominated the turnover chart where Genex Infosys was the most traded stock till then, with shares worth Tk 328 million changing hands, closely followed by Fu-Wang Food, Beximco, Advent Pharma and BDCOM Online.

The Chittagong Stock Exchange also opened lower with its All Shares Price Index (CASPI)—losing 52 points to stand at 19,723, while the Selective Categories Index – CSCX fell 32 points to reach 11,831 at 12:00 noon.

Of the issues traded till then, 64 advanced, 125 declined, and 32 remained unchanged with Tk 92 million in turnover.

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