Stocks hit 33-month low | The Daily Star
12:00 AM, September 12, 2019 / LAST MODIFIED: 12:00 AM, September 12, 2019

Stocks hit 33-month low

Dhaka stocks yesterday saw the steepest fall in the last two months as bears continue to trample the market.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 75.78 points to close at 4,933.17, the lowest in 33 months.

In the last one month, the index lost 303 points and Tk 17,838 crore in market capitalisation.

A top official of a leading stock broker said foreign investors along institutional investors have been selling shares in the last few months instead of purchasing.

“The trend is continuing,” he said, adding that retail investors are retreating from the market now that the index has tumbled below the psychological 5,000-point level.

With the index sliding, general investors are also selling off shares fearing further decline, said a trading official of IDLC Securities requesting not to be named.

“Investors incurred huge losses in the stock market in the last few weeks, so they have no room to invest more.”

Moreover, they prefer to keep liquid money in hand by selling shares to buy stocks when they become cheaper in future, he added.

Fuel and power sector took the biggest hit, with a 3.2 percent decrease, followed by general insurance and textile, both of which dropped 2.3 percent, said UCB Capital Management in its daily market analysis.

Banks and non-bank financial institutions are suffering from liquidity pressure, so their participation has remained low, said another merchant banker.

“Foreign investors are selling off their shares due to the lack of confidence and depreciation of local currency against the US dollar.”

These, along with the announcement of liquidation of People’s Leasing and Financial Services, have drained general stock investors’ confidence, he added.

Although the stock market regulator took some steps to boost investors’ confidence, they turned out to be stop-gap measures.

“Such steps could save the index from falling for just a few days,” he added.

Turnover rose 23.43 percent to Tk 502.42 crore yesterday.

Of the traded issues, 37 advanced, 288 declined, with 28 securities closing unchanged. National Tubes dominated the turnover chart with transaction of Tk 26.88 crore shares, followed by JMI Syringes, Beacon Pharmaceuticals, Monno Ceramic and Stylecraft.

National Tubes was the day’s best performer with a 9.93 percent gain, while ML Dyeing was the worst loser, shedding 9.56 percent.

Chattogram stocks also fell with the bourse’s benchmark index, CSCX, declining 132.59 points, or 1.43 percent, to finish the day at 9,114.83.

Losers beat gainers as 210 declined and 36 advanced, while 15 finished unchanged on the Chittagong Stock Exchange.

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