Stocks see sharp fall

Just a day after a stakeholders’ meeting to find out a way to arrest the ongoing slump, Dhaka stocks fell sharply yesterday -- a development that could cause further worry for investors.

The DSEX, the benchmark index of Dhaka Stock Exchange, fell 30.74 points or 0.61 percent to close at a 33-month low of 4,928.98.

However, the index had risen 26 points in the previous three days.

On Monday, the finance minister headed the meeting with the stakeholders as the market lost over 300 points in a month.

Market insiders said the investors went for massive sell-offs even after the finance minister assured that good stocks will be brought in and good governance will be established in the market to revive confidence.

The minister also declared that a special committee will be formed to implement the goals.

The minister had correctly found out the main reasons behind the fall in investors’ confidence, said a merchant banker.

The stock market regulator did not do anything in the last few years to bring back investors’ confidence, he said requesting anonymity.

“The investors actually think the special committee would not be as useful as it should be.”

The stock market has been suffering from liquidity pressure and the market would be benefitted if the pressure eases, he said.

The market started the day on a positive note yesterday. However, it started falling from the first hour of trading and continued till the end.

Among the large cap sectors, fuel and power exhibited highest positive movements with a 0.91 percent gain and pharmaceuticals showed negative movement with a 1.02 percent loss.

Turnover, another important indicator of the market, rose by 12 percent to Tk 435.56. Of the traded issues, 71 advanced, 236 declined and 46 closed unchanged. National Tubes topped the gainers’ list with a 9.25 percent gain followed by Salvo Chemical, ML Dyeing, Quasem Industries and Green Delta Insurance.

National Tubes was the most traded stock too with a turnover of Tk 28.04 crore followed by Monno Jute Stafflers, Legacy Footwear, British American Tobacco and Square Pharmaceuticals. Chattogram stocks also fell 69.17 points or 0.75 percent to stand at 9,076.84.