The stock market ended sharply lower on Wednesday, with the benchmark index dipping below 6,500 mark, as jittery investors sold off major sector stocks amid the fall in value of local currency against dollar.
The market managed to stay afloat until the mid-session, but the heavy selling pressure on particular large-cap stocks in the later part of the session pulled the index down.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), finally slid 50.41 points or 0.77 per cent to settle at 6,487, after gaining 9.28 points in the previous day.
Two other indices also ended lower. The DS30 index, comprising blue chips, plunged 20.27 points to finish at 2,333 and the DSE Shariah Index (DSES) shed 9.42 points to close at 1,417.
Turnover, a crucial indicator of the market, also dropped to Tk 13.04 billion on the premier bourse, which was 12 per cent lower than the previous day's mark of Tk 14.80 billion.
Market operators said the risk-averse investors sold large-cap stocks in later part of the session which caused the index to drop sharply.
Nervous investors sold shares as local currency is depreciating against the US dollar further after a few days of stability, said a merchant banker, seeking anonymity.
The buying and selling rates of each dollar on Tuesday stood in the range of Tk 102.37 to Tk 106.90 in contrast to Tk 95 two days earlier.
Stocks tumbled as investors aimed their selling spree on particular large-cap stocks, taking advantage of the recent price appreciation, as they were concerned regarding the recent currency devaluation, said EBL Securities, in its regular market analysis. Investors were watchful as the Bangladesh Bank recently set uniform exchange rates for exporters and remitters, while the interbank dollar rate jumped to Tk 106.9 on Tuesday, said the stockbroker.
"Stocks witnessed a big fall as pessimist investors were in the selling mood," said International Leasing Securities.
However, investors' enthusiasm was noticed in the small-cap sectors like jute and tannery with a remarkable price surge, said the stockbroker.
Price fall of five large-cap stocks such as Beximco, LafargeHolcim, Beximco Pharma, United Power and Kohinoor Chemicals jointly accounted for 25 points fall of DSEX, according to amarstock.com, a market data analyst.
The pharmaceuticals sector topped the turnover chart, grabbing 24 per cent of the day's total turnover, followed by miscellaneous (26.50 per cent) and engineering (10.40 per cent).
Large-cap sectors posted losses with the power sector experiencing the highest loss of 0.92 per cent, followed by banking with 0.60 per cent, engineering 0.50 per cent, financial institutions 0.45 per cent, pharma 0.36 per cent and food 0.23 per cent.
On the other hand, the small-cap jute sector saw a sharp gain of 5.90 per cent, followed by tannery with 1.30 per cent and travel & leisure 0.60 per cent.
Losers took a strong lead over the gainers, as out of 371 issues traded, 175 closed lower, 72 higher and 124 others remained unchanged on the DSE trading floor.
Orion Pharma became the most-traded stock with shares worth Tk 1.25 billion changing hands, followed by Beximco (Tk 1.18 billion), JMI Hospital Requisite Manufacturing (Tk 548 million), LafargeHolcim (Tk 343 million), and Malek Spinning Mills (Tk 317 million).
Scam-hit International Leasing & Financial Services (ILFSL) was the day's top gainer, soaring 10 per cent, followed by Jute Spinners 9.96 per cent, CVO Petrochemical Refinery 9.51 per cent, Orion Infusion 8.74 per cent and Ambee Pharma 7.49 per cent.
Fareast Islami Life Insurance was the worst loser, shedding 6.19 per cent.
The Chittagong Stock Exchange (CSE) also fell sharply with the CSE All Share Price Index (CASPI) losing 164 points to settle at 19,068 and its Selective Categories Index (CSCX) shedding 99 points to close at 11,428.
Of the issues traded, 143 declined, 50 advanced and 69 issues remained unchanged.
© 2024 - All Rights with The Financial Express
