The key index of the Dhaka Stock Exchange (DSE) tumbled to 42 months' low on Tuesday, as panic-driven investors dumped their holdings, fearing further fall.
DSEX lost 78.66 points or 1.74 per cent to settle at 4,419 on the day. It was the lowest level of DSEX in 42 months since June 27, 2016, when it was 4,412.
DSEX lost a total of 298 points in past one month, while it shed 1,531 points since January 24, this year, when the index peaked at 5,950.
The market capitalisation also shed Tk 171 billion in the past one month, while it lost Tk 820 billion in the past eleven months, the DSE data shows.
On Tuesday, 79 per cent of the listed securities lost prices on the DSE, ranging from 0.08 per cent to 9.10 per cent.
When asked, the presidents of the DSE Brokers Association (DBA) and the Bangladesh Merchant Bankers Association (BMBA) refused to make any comment regarding the ongoing price correction.
However, one of them said comments do not bring any effective outcome for the market. As a result, the general investors often criticise the persons who make remarks on the market.
Azam J Chowdhury, president of the Bangladesh Association of Publicly Listed Companies (BAPLC), said the Bangladesh Securities and Exchange Commission (BSEC) is doing nothing visible for bringing stability in the market.
"The securities regulator is only holding discussions, whereas the investors' confidence has almost come down to the rock bottom."
He said the banks' investment scope should be enhanced further to overcome the liquidity shortage in the market.
"The banks are in a troublesome situation mainly because of the non-performing loans (NPLs). Their investment in the capital market is not responsible for their current poor situation."
On Tuesday, investors' dampened mood also kept participation thin, as turnover went down by 8.0 per cent from the last session to close at Tk 2.82 billion.
Some brokerage firms also opted for forced sale to minimise risk in margin loans, he added.
On the day, telecommunication sector witnessed the highest price correction of 2.90 per cent on the DSE, followed by financial institutions 2.80 per cent, textile 2.80 per cent, engineering 2.60 per cent, and fuel & power 2.20 per cent.
Of the large cap companies having influence on index movement, the share prices of Grameenphone, British American Tobacco Bangladesh Company (BATBC), United Power, Square Pharmaceuticals, MJL Bangladesh and Renata declined, ranging from 0.62 per cent to 4.48 per cent.
Former chairman of the securities regulator Dr A B Mirza Azizul Islam said despite some negative indicators of the economy there is no reason behind such a massive correction.
"Any investor having common sense should now purchase shares considering lower P/E ratio."
He also blamed non-cooperation among the regulatory bodies concerned, as the outcomes of many decisions taken different times, fail to be visible.
"The listing process of companies having good fundamentals must be strengthened to bring back investors' confidence," Mr Islam added.
Of 30 listed banks, the share prices of 22 declined, while the prices only three advanced marginally.
Of 23 non-banking financial institutes, the share prices of only two rose marginally.
Of 56 textile companies, the share prices of only seven advanced on the DSE.
Some market operators said investors are struggling in the ongoing depressed market outlook.
Besides, gloomy macro-economic outlook, soaring NPLs, and foreign investors' extracting their funds from the market worsened the situation.
A merchant banker said continuous fall in private sector credit growth, declining export, poor tax revenue collection, and the government's heavy bank borrowing reflected a gloomy state of the country's economy.
He noted that ongoing erosion in stock prices reduced investment ability of the market intermediaries and high-net worth investors.
EBL Securities said growing concern over the country's macro-economic indicators made investors worried, which acted as the main catalyst behind the recent sharp downfall of the index.
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