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Stocks opened lower on Wednesday as investors reacted negatively to the abrupt gas price hike, amid growing fears that rising gas prices could drive up business costs and fuel inflation.
Ignoring concerns from businesses, the government raised the gas price by 33 per cent on average for new consumers in captive power plants and industries on Sunday.
Market analysts said the increased price would negatively impact manufacturing companies, which will hurt the profitability of listed firms.
Additionally, rising yield rates on government securities have also made investors cautious about putting money into stocks at this time.
Following sharp declines in the previous two days, the prime index of the Dhaka Stock Exchange (DSE) fell by nearly 8 points, or 0.14 per cent, to 5,124 at 11:00 am, when this report was filed.
The DS30 index, which comprises 30 prominent companies, shed 4 points to reach 1,889, while the DSES index, which represents Shariah-based companies, lost 2 points to settle at 1,153 by that time.
Turnover, another important market indicator, stood at Tk 1.08 billion.
Of the issues traded till then, 151 advanced, 138 declined, and 92 remained unchanged on the DSE trading floor.
Desh General Insurance was the most traded stock, with shares worth Tk 56 million changing hands.
The Chittagong Stock Exchange also saw a downward trend, with its All Shares Price Index (CASPI) losing 10 points to reach 14,360, while the Selective Categories Index (CSCX) lost 5 points to settle at 8,749.
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