Stocks tumble as economic crisis deepens

Both Dhaka and Chittagong stock exchanges closed lower yesterday snapping their three-day gaining streak as the clouds over the economy darkened further after a fall in exports and remittance receipts in September. 

Exports fell 6.25 per cent year-on-year to $3.9 billion last month while remittances dropped 11 per cent to $1.54 billion, data from the Export Promotion Bureau and the Bangladesh Bank showed.

The weakening macroeconomic situation left investors worried.

As a result, the DSEX, the benchmark index of the premier bourse in Bangladesh, lost 13 points, or 0.20 per cent, to close at 6,518.

Both DS30, the blue-chip index, and DSES, the shariah-based index, were down 0.32 and 0.10 per cent respectively.

Of the securities, 74 advanced, 122 declined and 178 did not show any price movement.

"The stocks on the DSE slipped into red following a three-day gain as cautious investors were involved in quick profit-booking on sector-specific stocks," said International Leasing Security Ltd, a brokerage house, in its daily market review.

The market opened on a positive note but couldn't sustain its gaining streak after the mid-session and continued to fall till the end in a gradual manner.

On Sunday, the central bank raised the key interest rate by 25 basis points to 5.75 per cent to curb inflation, which is running at a multi-year high.

Moreover, export earnings and remittances declined in September that are widening the trade deficit and piling up more pressure on foreign exchange reserves.

"All the news created a negative sentiment among investors, so they decreased their participation in the market," said the brokerage house.

Turnover, another key indicator of the market, dropped to Tk 1,284 crore, down 16 per cent from the previous day's Tk 1,533 crore.

Summit Alliance Port Ltd topped the gainers' list with an 8.23 per cent rise. Lub-rref, Gemini Sea Food, International Leasing & Financial Services, and Yeakin Polymer also rose significantly.

ADN Telecom suffered the sharpest correction, eroding 6.7 per cent. Bashundhara Paper Mills, Bangladesh Monospool Paper Manufacturing, Aman Feed, and Mozaffar Hossain Spinning Mills were also on the top losers' list.

Orion Pharma Ltd became the most-traded stock with its shares worth Tk 82 crore followed by Beximco, Eastern Housing, BBS Cables, and Bangladesh Building Systems.

The Chittagong Stock Exchange (CSE) also fell.

The Caspi, the all-share price index of the bourse in the port city, dropped 60 points, or 0.31 per cent, to 19,199 at the end of the day. Turnover stood at Tk 21 crore.

On the CSE, 68 stocks advanced, 74 fell, and 94 were unchanged.