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DSEX sinks below 6200-mark amid protest

Retail investors demand PM's intervention

FE REPORT | February 27, 2023 00:00:00

The prime index of the Dhaka Stock Exchange (DSE) slumped below the 'psychological' threshold of 6,200-mark on Sunday as shaky investors continued to dump their holdings to escape further losses.

DSEX, the prime index of the DSE, lost 23.02 points or 0.37 per cent to settle

at 6182, the lowest since January 2 this year.

Meanwhile, a group of investors under the banner of "Bangladesh Capital Market Investors Association (BCMIA)" staged a demonstration in front of the DSE old building at Motijheel in the capital against the persistent fall of stock prices.

They alleged that the securities regulator had failed to curb manipulation in

the market, which was why small investors were losing money.

The retail investors also placed a 12-point demand, including formation of a special fund amounting to Tk 100 billion to support the ailing market with a 3 per cent interest rate, and the existing floor price to stay in place until the stock market becomes stable.

They also sought an end to forced selling of shares, widening of the tax rate gap between listed and non-listed companies by at least 15 per cent, and punitive measures against the sponsor-directors, who failed to hold 2 per cent share individually and 30 per cent collectively in their companies.

Kazi Abdur Razzak, general secretary of the forum, said, "We want Prime Minister's intervention."

Later, the protesters submitted a written copy of their demands to the Prime Minister's office.

Market experts said investors had been suffering from a confidence crisis for a long time amid the depressed market outlook.

Turnover, a crucial indicator of the market, remained as low as Tk 2.31 billion, slightly up from Tk 2.23 billion the day before.

The prime bourse got only 4 gainers while the Chittagong Stock Exchange 2 gainers on Sunday.

The bearish vibe in the market continues with an ongoing liquidity crisis across the trading floor, said EBL Securities.

The market has been wading through choppy trading in the past few sessions in the absence of a positive market trigger, while investors were already hesitant to make fresh investments in equities due to macroeconomic adversities and dismal financial performance of the listed companies.

Investors continued to offload their holdings in order to protect their funds from further erosion, said EBL Securities.

The CSE also ended lower with the CSE All Share Price Index - CASPI -plunging by 58 points to settle at 18,276 and the Selective Categories Index - CSCX - shedding 35 points to close at 10,955.

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