Stock investors lost Tk 19,626cr in March

Dhaka Stock Exchange lost about 5 percent, or Tk 19,626 crore, in market capitalisation so far this month thanks to the banking sector's prolonged liquidity crisis.

As of yesterday, market capitalisation of the country's premier bourse stood at Tk 388,220 crore.

DSEX, the benchmark general index of the Dhaka Stock Exchange, shed more than 379 points, or 6.45 percent, so far this month.

"The banking sector and the capital market are linked," said Mohammed Rahmat Pasha, managing director of UCB Capital Management.

As banks are suffering from liquidity crunch, it has affected the capital market, he said, while urging the government to come up with a policy support to help investors regain their confidence in the market and increase liquidity supply.

Yesterday, it fell 78.39 points, or 1.4 percent, to close at 5,491 points -- the lowest since June 19, 2017.

The freefall left the key index to settle at below the 5,500-mark.

"Investor sentiment in the market is still shaky due to the current liquidity crisis," said EBL Securities in its daily market analysis.

Panicked investors sold off their shares in almost all the sectors, including banks, financial institutions, and fuel and power.

Among the major sectors, textile declined 2.83 percent, financial institutions 2.53 percent, banks 1.77 percent, mutual funds 1.49 percent, fuel and power 1.39 percent, and engineering 1.28 percent.

"The market is facing a forced-sale pressure," said a senior merchant banker requesting not to be named.

Investors can take margin loan from merchant banks to buy "A" category shares.

If the price of the securities bought with the borrowed money decreases in value past a certain point, the lenders can legally force investors to sell off some of their assets to save their margin loan.

As the share price of "A" category companies fell significantly, several shares reached a point that led to a forced selling.

"Merchant banks are urging investors to deposit money; otherwise they are going to carry out a forced-sale," the senior official added.

Turnover, an important indicator of the market, went up 39 percent to Tk 311.44 crore, with 8.64 crore shares and mutual fund units changing hands on the DSE. Losers beat gainers as 282 declined, 37 advanced and 14 finished unchanged on the premier bourse.

Grameenphone dominated the turnover chart with its transaction of 32.95 lakh shares worth Tk 7.06 crore, followed by Square Pharma, Mercantile Bank, Salvo Chemical and Aamra Networks.

Standard Insurance was the day's best performer with its 7.73 percent gain, followed by Monno Jute Stafflers, United Insurance and Agrani Insurance.

Central Insurance was the worst loser of the day, shedding 9.69 percent, followed by CAPM IBBL Mutual Fund, Queen South Textiles and SEML IBBL Shariah Fund.

The port city bourse, the Chittagong Stock Exchange, also fell sharply, with its benchmark CSCX index shedding 137.61 points, or 1.3 percent, to finish at 10,238.28 points.

Losers beat gainers as 190 declined, 29 advanced, and 8 finished unchanged. The port city bourse traded 54.95 lakh shares and mutual fund units worth Tk 12.27 crore.