Stock market opens week with old wounds

Stocks continued to bleed yesterday as investors are concerned about the potential outcome of an ongoing tussle between the Bangladesh Bank and the market regulator.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 78 points, or 1.41 per cent, to hit 6,773.

Having shed 65 points in the previous trading session, this marked the fifth day in a row that the index has been on a downward trend.

The Bangladesh Securities and Exchange Commission (BSEC) and the central bank are currently at odds over several market-related issues.

"Their tussle is very clear to the public eye, so it had an adverse effect on investor confidence," said a stock broker preferring anonymity.

The Bangladesh Bank recently sent letters to several asset management companies, inquiring about their investment activities. But responding on behalf of these asset management firms, the BSEC said that such inquiries should have been placed through the market regulator.

"This incident and other similar issues caused a panic among investors," the stock broker said.

"So, they decided not to buy shares at the moment, which is not a good sign for the market," he added.

A senior official of the BSEC told The Daily Star that they are set to hold a meeting with central bank officials tomorrow in a bid to remove all disagreements on this issue.

Under this backdrop, the Dhaka bourse passed another bearish session yesterday as cautious investors continued their selling spree in fears of further erosion in the value of their investments, said International Leasing Securities in its daily market review.

Besides, growing concerns over the new coronavirus variant have only worsened investor confidence.

In addition, the increasing inflation rate coupled with a liquidity crunch in the money market gave rise to even more panic in the market. This put most investors in a selling mood, it added.

The top 10 traded stocks captured around 47.9 per cent of the day's trade with Beximco Ltd contributing 11.2 per cent to the total. On the DSE, 66 stocks advanced, 291 declined, and 15 remained unchanged.

Sena Kalyan Insurance kept topping the gainers' chart, rising 9.78 per cent, followed by Acme Pesticides, Emerald Oil, Aziz Pipes, and Alltex Industries.

LR Global Mutual Fund One shed the most, dropping 9.87 per cent, followed by Shyampur Sugar Mills, National Tea, KDS Accessories and The Peninsula Chittagong.

Stocks of Beximco Ltd traded the most, worth Tk 91 crore, followed by One Bank, IFIC Bank, Paramount Textile, and First Security Islami Bank.

Turnover at the country's premier bourse stood at Tk 836 crore, down from Tk 849 crore a day earlier.

The Chittagong Stock Exchange also edged down yesterday as the CASPI, the main index of the bourse in the port city, slid 201 points, or 1.09 per cent, to 19,838. Among 266 stocks traded, 53 rose, 192 fell, and 21 remained the same.