DSEX wipes out 231 points in four days

No let-up in panic sell-off

FE Report | Thursday, 9 January 2020

Stocks tumbled for the fourth consecutive session on Wednesday, as low sentiment prompted panic sell-offs by investors.
DSEX, the benchmark index of Dhaka Stock Exchange (DSE), witnessed another sharp fall, settling at 1.23 per cent or 53.06 points lower at 4228.36 points.
As the free fall continues, the market P/E (price-earning) ratio came down to 11.29.
The market opened on a positive note and showed an uptrend for twenty minutes. But soon afterwards, the index started to fall and the trend continued until the end of the session amid volatility.
The DSEX lost a total of 231 points in the last four sessions, reaching the lowest level since May 3, 2016.
According to the EBL Securities, stocks continued to suffer losses due to several factors, including volatility in the money market, a row between Grameenphone and the telecom regulator over audit claim and sell-offs by foreign investors.
Of 351 issues traded on the DSE on Wednesday, 51 gained, 249 declined and 51 issues remained unchanged.
Of the major sectors, telecommunications posted the highest loss of 4.4 per cent, followed by financial institutions (2.2 per cent), engineering (1.9 per cent), pharmaceuticals & chemicals (1.8 per cent) and textile sector (1.7 per cent).
Investors' participation was mostly concentrated on the banking sector which grabbed 13.1 per cent of the market turnover, followed by engineering (12 per cent), pharmaceuticals & chemicals (10.3 per cent) and fuel & power sector (9.1 per cent).
According to another market review of International Leasing Securities, the extended bearish vibe in the market kept investors worried and provoked many of them to go for sell-offs to avoid further losses.
Stocks from most of the sectors, especially telecommunications, pharmaceuticals, financial institutions, engineering, textile, banking and food, contributed to the notable fall of the indices, it said.
LafargeHolcim Bangladesh topped the turnover chart by generating Tk 139 million in transactions, followed by ADN Telecom (Tk 133 million), Standard Ceramic Industries (Tk 123 million), BRAC Bank (Tk 122 million) and Khulna Power Company (Tk 106 million).
ADN Telecom was the top gainer as it rose 9.95 per cent to close at Tk 44.20 each.
Meghna Pet Industries was the worst loser, shedding 9.17 per cent to close at Tk 9.90 each.
On the Chittagong Stock Exchange (CSE), the benchmark index -- CASPI -- declined 0.94 per cent or 122.77 points to close at 12887.69 points.
Of 291 issues traded, 47 advanced, 146 declined and 26 issues remained unchanged on the port city bourse.
The turnover of CSE stood at Tk 145.35 million.

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