Investors angry as stocks dive to eight-month low

The benchmark index plunged to an eight-month low as stocks slumped for the fourth session yesterday, prompting a group of investors to protest the freefall on the streets in Dhaka.

The investors demonstrated from 12:00 noon to 2:30pm in front of the Dhaka bourse, and later submitted a memorandum to Bangladesh Securities and Exchange Commission with 19-point demands.

DSEX, the key general index of Dhaka Stock Exchange, closed the day at 4,477.99 points, after falling 58.39 points, or 1.28 percent.

The investors' demands include steps to increase banks' investment exposure to the stockmarket, interest waiver against share credit, creating a Tk 15,000 crore fund for share credit at 5 percent simple interest and formulation and implementation of the share buy-back law.

“A negative trend has dominated the market for a long time. We request the regulator to take steps to implement our recommendations,” said Mizanur Rashid Chowdhury, president of Biniogkari Oikya Parishad, a loose grouping of share investors.

Investors demonstrate in front of the Dhaka Stock Exchange building on Tuesday to protest the freefall of prices. Photo: STAR

The index broke its nearest support level by falling below the psychological level of 4,500 points, LankaBangla Securities said in its market analysis.

The index is falling due to a lack of confidence among market makers, the stockbroker said.

The market wiped out last eight months' gain in the recent downward trend, as the selling pressure continued.

The cement sector took the biggest hit with a 3.6 percent fall in market capitalisation, followed by fuel and power at 2.38 percent, banks 1.86 percent and textile 1.33 percent.

However, some multinational and cash cow stocks remained safe from the market hit as investors sought those to park funds in.

Losers outnumbered gainers as 229 declined, 53 advanced and 24 scrips remained unchanged on the DSE.

The day's turnover however rose 14.2 percent from the previous day to Tk 289.72 crore. Grameenphone dominated the turnover chart with transactions of 7.31 lakh shares worth Tk 24.75 crore, followed by Shahjibazar Power Company, Ifad Autos, Summit Alliance Port and ACI.

Reckitt Benckiser was the day's best performer, advancing 5.73 percent, while Singer Bangladesh was the worst loser, slumping by 20.36 percent. Chittagong stocks also declined yesterday, with the bourse's selective category index, CSCX, shedding 73.5 points to close at 8,311.84 points.

Losers beat gainers 166 to 45, with 20 securities remaining unchanged on the port city bourse.

Some 64.12 lakh shares and mutual fund units traded on the Chittagong Stock Exchange, generating a turnover of Tk 22.63 crore.