Stocks tumbled on Monday, the first session of the fiscal year (FY) 2018-19, as investors sold shares, fearing further fall of the stock prices.
The market fell steadily throughout the trading session. At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 83 points or 1.53 per cent to settle at 5,322.
Analysts said the market witnessed a major setback, depressed largely due to investors' attempt to safe guard their positions.
"The market continued bleeding as panic gripped the investors amid low confidence on the market," said an analyst at a leading brokerage firm.
He noted that mounting selling pressure by the local and foreign investors in large-cap stocks fueled the day's sharp fall of the index.
The two other indices ended lower. The DS30 index, comprising blue chips, fell 44 points to settle at 1,915 and the DSE Shariah Index plunged 16 points to close at 1,248.
"The institutional investors could not play their due role as the banks' capital exposure issue remains pending in the Bangladesh Bank," Khairul Bashar Abu Taher Mohammed, chief executive officer of the MTB Capital, told the FE.
Mr. Bashar, also secretary general of Bangladesh Merchant Bankers Association (BMBA), urged to relax the rules relevant to the banks' investment in stocks to revive the moribund capital market.
Turnover, the most important indicator of the market, also came down to Tk 7.85 billion, which was 2.0 per cent lower than the previous session's Tk 8.01 billion.
According to the International Leasing Securities, the investors mostly liquidated their holdings from financial institutions, banking and telecom sectors.
Among the major sectors, financial institutions posted the highest loss of 2.9 per cent, followed by banking with 2.1 per cent, telecom 2.1 per cent, pharmaceutical 2.1 per cent and cement 1.6 per cent.
Fuel & power and textile advanced 1.30 per cent each.
Of the traded issues, 206 declined, 106 advanced and 30 issues remained unchanged on the DSE trading floor.
Bashundhara Paper Mills, which made its share trading debut on Monday, topped the DSE turnover chart with 6.31 million shares worth Tk 886.58 million changing hands, closely followed by Ratanpur Steel, Monno Ceramic Industries, Beximco and United Power.
The port city bourse CSE also ended lower with its CSE All Share Price Index - CASPI - shedding 168 points to settle at 16,389 and the Selective Categories Index - CSCX - losing 101 points to finish at 9,907.
The losers beat gainers as 124 issues closed lower, 86 ended higher, with 21 issues remaining unchanged on the CSE.
The port city bourse traded 8.78 million shares and mutual fund units worth more than Tk 426 million in turnover.
© 2024 - All Rights with The Financial Express
