Stocks suffered a major setback Wednesday with key index of the prime bourse dipping below 4,800-mark again as investors went for panic sell-off, fearing further fall.
Brokers said the investors went for panic-sell-off as they anticipated that the ongoing political turmoil might deteriorate further following the news of arrest warrants against BNP chairperson.
A Dhaka court Wednesday issued arrest warrants against BNP Chairperson Khaleda Zia and two others for skipping court hearing in the Zia Orphanage and Zia Charitable Trust graft cases.
The market started with a downward trend which sustain throughout the session. DSEX, the prime index of the Dhaka Stock Exchange (DSE) came down below the 'psychological' threshold of the 4,800-mark once again and ended at 4,742.22 points, shedding 58.92 points or 1.22 per cent.
The two other indices also saw steep decline. The DS30 index, comprising blue chips nose-dived 23.05 points or 1.28 per cent to close at 1,770.02 points. The DSE Shariah Index (DSES) plunged 13.38 points or 1.17 per cent to close at 1,126.79 points.
Turnover on DSE, however, improved to Tk 3.42 billion, registering an increase of 10.89 per cent over the over the previous session's value of Tk 3.09 billion.
The investors' attention was remained focused on pharma, power and engineering - the sectors that accounted for 17.5 per cent, 15.8 per cent and 11.4 per cent respectively of the day's total turnover.
"Bearish sentiment of previous trading session extended as soon as arrest warrant was out for chairperson of opposition party," said LankaBangla Securities, in its daily market analysis.
"Market became depressed on renewal of political confrontation. Apprehending prolonged political conflicts, investors refrained from fresh investment and continued sell-off," said the stock broker.
"The short-term profit booking attitude from the market participants caused the major bourse of the country experience major setback," said International Leasing Securities.
Panicky investors went for selling spree from the beginning of trading session which sustain throughout the session, said the International Leasing.
However, market turnover inversed by 10.89 per cent from previous session backed by aggressive panic sales following ongoing political strife, the International Leasing added.
IDLC Investments said: "Since the news of political distance between major political fronts emerges, panic driven sell pressure turned down the market as investors tried to minimize losses".
Investors remind most active in the large-cap segment, where MJL BD was the most liquid name, followed by Square Pharma and Lafarge Surma Cement.
Among the major sectors, only food and allied sector posted a gain of 0.20 per cent. All other sectors closed in red. Cement registered the highest loss of 2.80 per cent.
The port city bourse, Chittagong Stock Exchange (CSE) also saw sharp decline with its Selective Categories Index - CSCX - lost 90.46 points to close at 8,818.01 points.
Losers beat gainers 186 to 35, with 24 issues remaining unchanged at the port city bourse that traded 7.45 million shares and mutual fund units, turnover value of Tk 267.54 million.
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