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Selling pressure affects stock market

FE Report | November 25, 2021 00:00:00

Dhaka bourse saw a straight fall on Wednesday as most of the listed securities including large cap issues lost prices amid selling pressure executed by shaky investors.

On the day, investors' participation also declined and DSEX, broad index of Dhaka Stock Exchange (DSE), went down below 7000 points.

The market opened the day's session positively but soon later the DSEX started to decline and continued the falling trend till closure.

At the end of the session, the core index settled at 6917.91 with a loss of 1.35 per cent or 95.08 points.

The price correction witnessed by all listed banks intensified the fall of the broad index.

Apart from banks, the large cap companies which lost prices include Walton Hi-Tech Industries, Grameenphone, Beximco, Square Pharmaceuticals, Renata and MJL Bangladesh.

Asked, the president of Bangladesh Merchant Bankers Association (BMBA) Md. Sayadur Rahman said it's difficult to mention about any specific reason behind the corrections observed recently.

"Investors became panicked following the market's down trend and start offloading shares. On the other hand, they arrived at the market with a buying mood following the upward trend of the market," Mr. Rahman said.

On Wednesday, the shariah based index DSES declined 1.12 per cent or 16.57 points to close at 1452.

DS30 index comprising blue chip securities went down by 1.10 per cent or 29.48 points to close at 2631.37.

According to a market review of EBL Securities, equity indices on the Dhaka bourse were in the doldrums as the market momentum weakened due to the tightening liquidity scenario in the money market.

"Investors were quite shaky and engaged in selling spree in recent market outperforming stocks while correction in banking stocks, the largest market cap shares, aggrieved the situation further," said a market review of EBL Securities.

Of 365 issues traded, 75 advanced, 259 declined and 31 were unchanged on Wednesday.

The premier bourse DSE posted a turnover of Tk 11.29 billion which was 14.08 per cent less than the turnover of previous session.

Of total turnover, Tk 593 million came from transactions executed in block board.

Of major sectors which saw price correction, bank declined 2.5 per cent, engineering 1.1 per cent, financial institutions 1.2 per cent, fuel & power 0.6 per cent, general insurance 1.3 per cent, engineering 1.1 per cent, pharmaceuticals & chemicals 1.1 per cent, textile 0.3 per cent and telecommunication 0.4 per cent.

Investors' participation was concentrated mostly on banking sector which grabbed 34.7 per cent followed by textile 10.6 per cent, miscellaneous 10.3 per cent, pharmaceuticals & chemicals 9.8 per cent, and financial institutions 5.6 per cent.

One Bank topped the scrip wise turnover chart with a value of Tk 1.08 billion followed by Beximco Tk 1.06 billion, IFIC Bank Tk 678 million, First Security Islami Bank Tk 538 million and Delta Life Insurance Company Tk 427 million.

Shurwid Industries was the number one gainer after rising 9.93 per cent or Tk 1.40 to close at Tk 15.60 each.

LR Global Bangladesh Mutual Fund One was the worst loser after declining 10 per cent or Tk 0.9 to close at Tk 8.10 each.

CASPI, benchmark index of Chittagong Stock Exchange (CSE), declined 1.19 per cent or 246.12 points to close at 20269.76 points on Wednesday.

Of 285 issues traded, 87 advanced, 171 declined and 27 were unchanged and the port-city bourse CSE posted a turnover of Tk 586 million.

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