The broad index of the Dhaka bourse on Monday witnessed another sharp fall and settled at three-month low following investors' selling spree.
On the day, the premier bourse also featured the lowest turnover value in last 40 sessions following correction witnessed by all sectors except jute.
The DSEX, the broad index of the Dhaka Stock Exchange (DSE), lost 2.46 per cent or 129.56 points in two consecutive sessions including Monday.
At the end of Monday's session, the DSEX settled at 5251.95 points with a loss of 1.48 per cent or 79.21 points. The DSEX declined 0.93 per cent or 50.35 points in previous session.
Following the sharp fall of the market, the Bangladesh Securities and Exchange Commission (BSEC) will sit with the market intermediaries today (Tuesday) at the office of the Investment Corporation of Bangladesh (ICB).
The former chairman of the securities regulator Dr. AB Mirza Azizul Islam said the current declining trend of the capital market is not understandable to him as the export growth and macro economic scenario are at satisfactory level.
He said the market is declining amid the ongoing preparation of investing Tk 15 billion by the ICB.
"The fund, received from the Chinese consortium, is supposed to be invested in the market. That's why, the going declining trend of the market is not understandable to me," Mirza Aziz said.
He said the interest rate of the saving certificates may be a reason for poor participation in the capital market.
"But on the hand, the interest rates offered by the banks are also lower. That's why, investors' poor participation in the market is not understandable to me amid lucrative P/E ratios of listed securities," Mirza Aziz said.
He has also blamed the investors' so called tendency of participating in transactions of over-priced securities.
"Institutional investors are not playing their due role," Mirza Aziz said, adding that general investors should invest considering the companies' fundamentals.
The DSE opened the Monday's session with a positive note and the broad index DSEX rose 9.0 points within four minutes.
Soon later, the DSEX started to decline and exhibited a free fall till closure as around 70 per cent of listed securities lost prices.
The shariah-based DSES declined 1.68 per cent or 20.75 points to close at 1209.50 points.
The DS30 index comprising blue chip securities went down by 1.32 per cent or 24.99 points to close at 1859.32 points.
Of 340 issues traded, 64 advanced, 236 declined and 40 were unchanged.
The turnover stood at above Tk 4.35 billion which was 0.95 per cent less than the turnover of the previous session.
The Monday's turnover was the lowest after August 26 last.
"From the early part of the session, the market experienced selling pressure amid restless fall and investors adopted wait and see approach," said the EBL Securities.
Mohammad Saifur Rahman, an executive director of the securities regulator, said the market is witnessing correction as many investors are in selling mood.
"We will sit with the market intermediaries today (Tuesday) before starting the day's session to discuss the ongoing market situation," said Rahman, also the spokesperson of the Bangladesh Securities and Exchange Commission (BSEC).
He has expressed optimism regarding the restoration of the capital market soon.
"The Investment Corporation of Bangladesh (ICB) will invest Tk 15 billion in the market. The DSE shareholders are also set to invest their fund, received from the Chinese consortium, in the market on completion of relevant formalities," Rahman said.
Of the declining sectors, bank lost 1.5 per cent, engineering 1.7 per cent, financial institutions 0.5 per cent, fuel & power 2.0 per cent, pharmaceuticals & chemicals 1.3 per cent, telecommunication 0.2 per cent, textile 1.9 per cent and travel & leisure 2.0 per cent.
Investors' participation was concentrated on mostly textile sector which grabbed 19 per cent of the market turnover followed by fuel & power 14.7 per cent, pharmaceuticals & chemicals 14.10 per cent, engineering 12 per cent and bank 11.90 per cent.
Khulna Power Company topped the turnover chart with a value of Tk 246 million followed by Dragon Sweater and Spinning Tk 239 million, Summit Power Tk 210 million, Square Pharmaceuticals Tk 197 million and Delta Life Insurance Company Tk 163 million.
Central Pharmaceuticals was the number gainer with a rise of 8.82 per cent to close at Tk 14.80 each.
Bangladesh Steel Re-Rolling Mills was the worst loser after declining 14.05 per cent to close at Tk 83.0 each.
On the Chittagong Stock Exchange (CSE), the benchmark index CASPI also exhibited free fall on Monday.
At the end of the session, the CASPI settled at 16179.85 points with a loss of 1.40 per cent or 230.63 points.
The CSE30 declined 1.62 per cent or 238.71 points to close at 14462.87 points, while the CSE50 closed at 1196.42 points with a loss of 1.50 per cent or 18.23 points.
Of 232 issues traded, 41 advanced, 165 declined and 26 were unchanged.
And the turnover stood at above Tk 181.86 million on the port city bourse CSE.
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