Bearish trend continues amid confidence crisis

Stocks extended losing streak for the second straight session on Wednesday as the risk-averse investors offloaded shares amid confidence crisis.
Following the previous day's downturn, the market opened lower and ended marginally lower amid persisted volatility.
DSEX, the key index of Dhaka Stock Exchange, went down by 23.81 points or 0.38 per cent to settle at 6,187. DSEX lost 74 points in the past two straight sessions.
In the last 11 trading days, the market slumped 10 sessions as the cautious investors sold their holdings amid growing concerns over the country's economic situation.
Continuous erosion of stock prices prompted the securities regulator and the finance ministry to intervene in the market, but failed to restore investors' confidence.
"The stock market regulator is taking one after another step to increase fund flow in the market and stop the market fall, but no initiative appeared to be effective to boost investors' confidence in the current bearish market," said a leading broker.
The Bangladesh Securities and Exchange Commission Wednesday again reduced the lower limit circuit breaker to 2.0 per cent from 5.0 per cent for all listed companies to arrest free fall on the market.
Recently, the securities regulator raised the margin-loan ratio to 1:1 to increase fund flow in the market and stop forced sale.
Soaring inflation and further devaluation of local currency might hurt investors' sentiment, he said.
Investors apprehended the market might decline further as various media reports warned about the upcoming risk to the country's economy, he said.
To combat the possible risk, the Bangladesh Bank might take tough measures which could have an adverse impact on the stock market, he added.
"The growing concerns about rising inflation which reduces the real income of the investors as well as the rising dollar value which decreases the value of the foreign investors' portfolio and decrease the confidence of investors," said the International Leasing Securities.
Stocks slid further on investors' worries as the global economic outlook made them nervous to exert sell-pressure on the bourse, said EBL Securities.
Despite the regulatory measures to revive the ailing market, stocks extended their losing run as investors are yet to regain confidence on the bourse, said the stockbroker.
Two other indices also ended lower. The DS30 index, comprising blue chips, fell 7.06 points to finish at 2,287 and the DSE Shariah Index (DSES) shed 3.82 points to close at 1,363.
Turnover, a crucial indicator of the market, also came down below Tk 6.0 billion mark again and amounted to Tk 5.13 billion, which was 22 per cent lower than the previous day's tally of Tk 6.60 billion.
Out of 375 issues traded, 250 declined, 76 advanced and 49 issues remained unchanged.
Beximco continued to dominate the turnover chart with shares worth Tk 464 million changing hands, followed by IPDC Finance, Shinepukur Ceramics, JMI Hospital Requisite Manufacturing and Fortune Shoes.
Sonali Paper & Board Mills was the day's top gainer, gaining 4.60 per cent while AB Bank was the worst loser, losing 6.60 per cent following its price adjustment after record date.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index (CASPI) shedding 120 points to settle at 18,162 and its Selective Categories Index (CSCX) losing 72 to close at 10,896.
Of the issues traded, 187 declined, 51 advanced and 30 issues remained unchanged on the CSE trading floor.
The port-city bourse traded 6.95 million shares and mutual fund units with turnover value of Tk 151 million.

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