DSE key index hits 1-month low for concerns over US visa policy

Stocks witnessed yet another setback on Sunday, with the prime index of the Dhaka Stock Exchange (DSE) tumbling below 6,300-mark, as investors dumped their holdings to escape from further losses.
Investors might have got panicked following the announcement of the US state department regarding imposition of visa restrictions on Bangladeshis for interference in matters tied to the upcoming national election.
The market has been in bear grip for more than a year since the stock market regulator imposed the floor price. Buyers have shown reluctance to buy stocks even at the lowest price set.
The prevailing floor price discourages investors to put fresh bets while the imposition of American visa restriction eroded investors confidence badly, said a leading stockbroker.
Many investors offloaded shares fearing further price fall without any foreseeable factor to help the market gain momentum.
Investors went for heavy sell-offs right from the start of the session owing to the uncertain market outlook amid the persisting macroeconomic concerns.
DSEX, the prime index of the Dhaka Stock Exchange, slumped nearly 29 points or 0.46 per cent to settle at 6,281, the lowest point in a month.
The DS30 Index, which comprises blue-chip companies, also plummeted 9.24 points to 2,136 while the DSES index, which represents Shariah-based companies, shed nearly 6 points to 1,358.
Turnover, a crucial market indicator, also dropped to Tk 5 billion, 32 per cent lower than the previous day.
Sellers dominated the market as cautious investors engaged in profit booking in the hyped-up insurance stocks, along with other sector-specific issues, said EBL Securities.
Stocks plummeted as investors were rattled for outcomes of the shift in American Visa policy, it said.
Most of the traded stocks saw price erosion, as of the issues traded, 148 witnessed price fall, 12 saw price surge and 150 issues remained unchanged on the DSE trading floor.
Small-cap companies kept their dominance on the turnover chart, with Fu-Wang Food being the most-traded stocks with shares worth Tk 226 million changing hands, followed by Eastern Housing, Union Insurance, BDCOM Online and Khan Brothers PP Woven Bag Industries.
The Chittagong Stock Exchange (CSE) also saw sharp decline, with the CSE All Share Price Index (CASPI) shedding 68 points to settle at 18,595 and the Selective Categories Index (CSCX) losing 41 points to close at 11,117.
The port city's bourse traded 1.58 million shares and mutual fund units with a turnover volume of Tk 81 million.

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