Stocks start week with a plunge

Dhaka stocks started the week with a fall yesterday for a cautious stance taken by institutional investors amid a liquidity crisis in the market. 

The benchmark index -- the DSEX -- opened the day on a positive note but took a downturn half an hour later, spurred by investors’ sell-offs. It fell 15.95 points or 0.35 percent to close the day at 4,498.

With the fall, the index has gone under a psychological level of 4,500 points.             

Stock investor Rakibul Ahsan Piplu said they were frustrated with the continuous fall of the index.

The market needs support from institutional investors but they are not buying shares, he added.

An asset manager said they had no money available for further investment because they had already put in all that they had.

He said the situation was that purchase of stocks would require selling some first, which would then have a worse impact. “So, we have nothing to do.”

One stock broker said he was losing what he had invested in the stock market one year back. Back then the market had gone down to such an extent that he had felt sure that it was the safest time to invest, he said.

“Now I have no money and confidence. Even, I don’t know whether the market will fall further or gain from this point,” he added.

Turnover, another important indicator, plunged 12.31 percent to Tk 306.54 crore only.

Of the traded issues, 100 advanced and 201 declined while 51 closed unchanged on the premier bourse.

Ring Shine Textiles dominated the turnover chart with transactions worth Tk 30.65 crore followed by Beacon Pharmaceuticals, Northern General Insurance Company, Khulna Power Company and Paramount Insurance Company.

Progressive Life Insurance Company was the day’s best performer with a 9.91 percent gain whereas Ring Shine Textiles was the worst loser shedding 10.67 percent.

Among the major sectors, cement declined 2.18 percent in market capitalisation followed by engineering (1.26 percent), textiles (1.10 percent) and non-bank financial institutions (0.83 percent). The benchmark index of Chittagong Stock Exchange -- the CSCX -- also fell 35.93 points, or 0.41 percent, to finish the day at 8,295.79.

Losers beat gainers as 129 declined, 57 advanced and 33 finished unchanged on the port city bourse, which traded shares and mutual fund units worth Tk 19.70 crore only.