FE Today Logo

Stocks plunge after single-day break

Telecom, pharma, financial institutions suffer most


FE REPORT | December 01, 2021 00:00:00


Stocks witnessed yet another massive fall on Tuesday, after a single-day break, due to confidence crisis among investors.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), plunged 92.25 points or 1.35 per cent to settle at 6,703, which is the lowest in nearly four months since August 12 this year.

The core index wiped out more than 664 points or 9.01 per cent since it reached 7,367 recorded on October 10 this year.

Turnover, a crucial indicator of the market, however, jumped to Tk 11.46 billion, which was 62 per cent higher than the previous day's seven-month lowest turnover of Tk 7.08 billion.

Market analysts said stocks failed to maintain the previous day's rising trend as investors dumped their holdings from major sector stocks amid lack of confidence.

Most of the investors opted for selling shares amid growing tension over a new coronavirus variant, according to a stockbroker.

"Overall downward pressure intensified as new variant virus worries further affected investors' confidence," he said.

He noted that the soaring inflation rate and tightening liquidity in the money market created more panic in markets which prompted investors to cash in on stocks.

Inflation jumped to a 12-month high to 5.70 per cent in October as elevated levels of commodity costs in the global markets translated into higher consumer prices in Bangladesh, according to Bangladesh Bureau of Statistics (BBS).

He, however, has expressed optimism about the revival of the stock market.

A tussle between the Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC) over some policy matters related to the stock market worried investors.

Meanwhile, the central bank and the stock market regulator held a meeting on Tuesday evening where they agreed to work together for development of the country's capital market, according to meeting sources.

Two other indices also ended sharply lower with the DSE 30 Index, comprising blue chips, losing 51.10 points to finish at 2,516 and the DSE Shariah Index (DSES) plunged 25.32 points to close at 1,405.

Top negative index contributors were Grameenphone, Beximco, Walton, Square Pharma, Beximco Pharma, BATBC and Robi. These seven stocks jointly contributed nearly 60 point fall of DSEX, according to amarstock.com.

Among other major sectors, telecom saw the highest loss of 2.60 per cent, followed by pharma with 1.20 per cent, non-bank financial institutions 1.20 per cent, food 0.90 per cent, power 0.90 per cent and banking 0.50 per cent.

More than 71 per cent traded issues lost their price, as out of 371 issues transacted, 266 declined, 65 advanced and 40 remained unchanged on the DSE trading floor.

ONE Bank was the most traded stock with shares worth Tk 1.90 billion changing hands, followed by Beximco (Tk 985 million), Beximco Pharma (Tk 491 million), IFIC Bank (Tk 391 million) and Paramount Textile (390 million).

Orion Infusion was the highest gainer, gaining 9.93 per cent while Aramit Cement was the day's worst loser, losing 9.89 per cent.

The Chittagong Stock Exchange (CSE) also ended sharply lower with the CSE All Share Price Index - CASPI -plunging 262 points to settle at 19,614 and the Selective Categories Index - CSCX-- shedding 159 points to close at 11,790.

Of the issues traded, 188 declined, 63 advanced and 27 remained unchanged on the CSE. The port-city bourse traded 16.09 million shares and mutual fund units with a turnover value of Tk 502 million.

[email protected]


Share if you like