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DSEX hits 56-month low amid panic sale

It sheds 335.81 points in six sessions

FE REPORT | January 14, 2020 00:00:00

A frustrated investor holds his portfolio statement in his mouth while watching a trading monitor at a brokerage house in the city as stocks plunged to a 56-month low on Monday — FE photo by Shafiqul Alam

The Dhaka Stock Exchange (DSE) core index witnessed another sharp loss on Monday, hitting 56-month low, as the losers took heavy control over the gainers following investors' panic sale.

Of the 354 issues traded on the day, 313 declined, while only 21 advanced on the premier bourse.

Following the price correction, witnessed by majority number of listed securities, the DSEX lost 2.11 per cent or 88.96 points to close at 4,123.48 points, the lowest level since May 7, 2015.

The DSEX lost 7.53 per cent or 335.81 points in six sessions, except the marginal rise, observed on Sunday.

Asked, some stock brokers refused to make detailed comments, saying they are 'puzzled' by the ongoing downtrend in the capital market.

"Now it's difficult for us to make comment about the market situation," said the CEO of a leading brokerage firm.

He said institutional investors are unable to support the market, as their funds have been stuck up in the shares, which are losing prices day by day.

The DSEX experienced straight fall on Monday, and lost around 107 points before a weak recovery stance, observed for last twelve minutes.

The recovery stance of last half an hour recovered some points, and the DSEX finally went down below 4,200-point mark.

The price correction witnessed by banks, financial institutions, engineering, power, pharmaceuticals & chemicals, and telecommunication intensified the DSEX's fall.

Asked, former chairman of the securities regulator Dr. A B Mirza Azizul Islam said there is no justification of such continuous correction, as there is no sudden change in macro-economic indicators.

"There is nothing to say about this irrational behaviour of the market. But it's the high time to purchase securities, as price earning (P/E) ratios of most of the securities are much lower now," Mr. Islam told the FE.

After continuous price correction, market capitalisation on the DSE declined 6.37 per cent or Tk 217.35 billion to close at above Tk 3.19 trillion on Monday.

Three large cap companies, having notable impact on index movement, lost prices from 2.44 per cent to 4.35 per cent on Monday. The companies are - Grameenphone, British American Tobacco Bangladesh Company and Square Pharmaceuticals.

Of the 21 issues advanced on Monday, seven were from banking sector, seven from engineering sector, and two from pharmaceutical sector.

On the day, the DSE shariah-based index - DSES - lost 2.12 per cent or 20.18 points to close at 929.96 points.

The DS30 index, comprising blue chip securities, declined 1.97 per cent or 27.92 points to close at 1,387.78 points.

After daylong selling pressure, the turnover rose 10 per cent to close at above Tk 2.86 billion on the DSE on Monday.

On the day, the CASPI, benchmark index of the Chittagong Stock Exchange (CSE), also declined 1.86 per cent or 238.70 points to close at 12,570.09.

Of the 252 issues traded, 28 advanced, 206 declined and 18 were unchanged, and the turnover stood at above Tk 133.50 million on the port-city bourse.

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