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DSEX plummets to 4,036.23

Investors stage demo, MoF calls meeting on Jan 20

FE REPORT | January 15, 2020 00:00:00

The Dhaka Stock Exchange (DSE) broad index - DSEX - witnessed another sharp loss on Tuesday, and came down to almost 4,000-point level after losing 423 points in eight sessions.

Like the previous sessions, losers took heavy control on gainers on the day amid liquidity 'shortage' and investors' 'lack of confidence' on the country's capital market.

After daylong selling frenzy, the DSE core index lost 2.11 per cent or 87.24 points to close at 4,036.23 points, the lowest level since the index settled at 4,014.37 points on May 5, 2015.

The DSE market capitalisation also witnessed a major erosion of Tk 274 billion following continuous and sharp price corrections of last eight sessions.

Meanwhile, a group of aggrieved investors staged demonstration in front of the DSE office on Tuesday, protesting the free fall of share prices.

The market coordination and monitoring committee of the Ministry of Finance (MoF) has called a view-exchange meeting on January 20 to discuss the market situation.

The representatives of the Bangladesh Securities and Exchange Commission (BSEC), the Investment Corporation of Bangladesh (ICB), and the Bangladesh Merchant Bankers Association (BMBA) will attend the meeting at the ICB office.

"The coordination committee will discuss the proposals, submitted for development of the capital market," said Mohammad Saifur Rahman, the BSEC executive director.

The BMBA representatives also called on the MoF top officials on Tuesday. In the meeting, the BMBA representatives demanded strong liquidity support for revival of the capital market.

"The MoF officials told us that the state-owned banks have already been asked to increase their share purchase volume in line with the stipulated exposure," said a representative of the BMBA.

On the day, the majority number of companies having good fundamentals lost prices on the DSE, while share prices of the companies having weak fundamentals advanced.

Of the large cap companies, the share prices of Grameenphone (GP), British American Tobacco Bangladesh Company, Square Pharmaceuticals, and Renata declined, ranging from 0.63 per cent to 2.57 per cent.

On the other hand, the share prices of some companies - United Airways (BD), Beach Hatchery, Imam Button, Tallu Spinning Mills, Zeal Bangla Sugar Mills, and Zahintex Industries - rose, although these companies incurred loss.

Of the total 355 issues traded on the DSE on Tuesday, 293 declined, while the share prices of only 23 advanced.

The shariah-based DSES index, DS30 index, and DSE CDSET index also declined moderately.

At the end of the day's session, the turnover stood at over Tk 2.62 billion, which was 8.33 per cent lower than that of the previous session.

Due to GP's share price correction, the market capitalisation of telecommunication sector declined 2.9 per cent, followed by engineering 2.7 per cent, fuel & power 1.5 per cent, and bank 1.2 per cent.

On Tuesday, the Chittagong Stock Exchange (CSE) benchmark index CSE All Share Price Index (CASPI) declined 2.18 per cent or 274.74 points to close at 12,295.34.

Of the 244 issues traded, 21 advanced, 203 declined, and 20 remained unchanged, and the turnover stood at above Tk 96.99 million on the port-city bourse.

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