Stock index erodes fast
A relentless fall in share prices pulled the key index of the Dhaka bourse down to a 25-month low due to inactiveness of investors amid low confidence.
The benchmark General Index, the gauge of Dhaka Stock Exchange, sank 2.86 percent or 132.53 points, to 4,506.08 at the 3pm close.
Shakil Rizvi, president of the Dhaka Stock Exchange, said the price earnings ratio is lucrative for long-term investments. “Investors must be patient,” he said.
New investors, including foreigners, will stay away from the market, frightened by a series of protests by a group of investors, Rizvi said.
“I have advised the investors not to buy shares on credit.”
The government decision on public employees' investment, credit crisis, talk of tight monetary policy and high interest rates on fixed deposits quickened the downtrend, he said.
Turnover on the premier bourse hits a one-and-a half month low. It is 0.23 percent lower than the previous day.
A total of 0.820 lakh trades were executed, generating Tk 233 crore in turnover with 5.05 crore shares changing hands on the Dhaka bourse.
Of the total 259 issues that traded on the DSE: 18 advanced, 230 declined and 11 remained unchanged.
All the major sectors declined: banks and non-bank financial institutions were down 2.09 percent and 3.26 percent. Telecoms, pharmaceuticals and power slipped more than 2 percent each.
The Chittagong Stock Exchange also declined yesterday. The Selective Categories Index lost 291.51 points, to end the day at 12,091.43.
Losers beat gainers 158 to 15 with four securities remaining unchanged on the port city bourse, which traded more than 69.62 lakh shares and mutual fund units with a value of Tk 30.3 crore.
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