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DSE market-cap sheds Tk 271b in 10 days

FE Report | October 26, 2021 00:00:00


The decline in prices of ten large-cap stocks contributed most to the market fall on Monday. These issues together were responsible for more than 71 points fall of Dhaka Stock Exchange (DSE) key index.

Ten large-cap stocks such as British American Tobacco Bangladesh contributed the most of index fall of 19.5 points, followed by Beximco (9.55 points), Walton (7.69 points), Summit Power (6.85 points) and Beximco Pharma (5.66 points).

They were followed by Square Pharma (5.29 points), LafargeHolcim (5.3 points), Grameenphone (4.63 points), United Power (3.81 points) and Robi (3.13 points), according to amarstock.com.

DSEX, the benchmark index of the DSE, plunged 120.41 points or 1.71 per cent to settle at two months lowest at 6,885 on Monday due to pressure stemming from panic sales by general investors.

Two other indices also ended lower. The DS30 index, comprising blue chips, dropped sharply by 53.76 points to finish at 2,644 and the DSE Shariah Index (DSES) fell 22.18 points to close at 1,465.

Meanwhile, DSE market-cap eroded about Tk 271 billion as market capitalisation in 10 trading days as worried investors sold large-cap issues.

The market-cap dipped to Tk 5,572 billion on Monday, which was Tk 5,843 billion 10 days earlier on October 13, according to DSE data.

Turnover, another important indicator of the market, stood at Tk 14.70 billion on the country's premier bourse, almost the same over the previous day's of Tk 14.71 billion.

Market analysts said the market fell further amid remarkable selling pressure from the beginning of the session, creating panic among investors.

The market is falling as some investors sold large-cap shares and others are following suit, said a merchant banker.

A stock broker said general investors were in panic, for which they sold shares.

The year-end dividend and quarter-end earnings declarations may have failed to meet the investors' expectations which prompted them for selling of shares, he said.

Large-cap stocks such as British American Tobacco Bangladesh, Beximco, Walton, Summit Power, Beximco Pharma and Square Pharma contributed most to the index fall, said stockbroker.

EBL Securities said the stock market went into free fall with no sign of reversal aggrieved by continued selling pressure from investors due to the absence of any trigger in the market.

Major sectors suffered losses with cement saw the highest correction of 3.50 per cent, followed by food with 2.80 per cent, financial institutions with 2.40 per cent, pharma 1.50 per cent, and power 1.50 per cent.

About 82 per cent traded issues lost prices on Monday as out of 376 issues traded, 307 closed lower, 47 higher and 22 remained unchanged on the DSE trading floor.

Delta Life Insurance topped the turnover chart with shares worth Tk 1.55 billion changing hands.

The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -plunging by 400 points to settle at 20,169 and the Selective Categories Index - CSCX - shedding 237 points to close at 12,123.

Of the issues traded, 246 declined, 37 advanced and 11 remained unchanged on the CSE trading floor.

The port-city bourse traded 16.36 million shares and mutual fund units with a turnover value of nearly Tk 606 million.

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