DSEX plunges below 5,600 points after 35 months
On the day, the prime index witnessed a drop of 54 points to close at 5,578, marking its lowest level since 5 May 2021.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dipped below the 5,600 mark for the first time in 35 months.
The decline was attributed to investors selling off their holdings, allegedly due to the perceived lack of effort from the market regulator to address the bearish sentiment.
Bourse indices keep failing to find solid ground owing to declined confidence and liquidity crises amid global economic uncertainty.
On Wednesday (24 April), the prime index witnessed a drop of 54 points to close at 5,578, marking its lowest level since 5 May 2021. During the session, the blue-chip index DS30 increased by 4 points settling at 1,985 and the DSES Index dropped by 6 points to 1,230.
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Among the stocks traded, 79 advanced, 274 declined, and 41 remained unchanged. However, turnover slightly increased to Tk602.75 crore, compared to Tk597.56 crore in the previous session.
Market insiders and stock analysts attribute the ongoing market downturn to the rising interest rates, which have rendered fixed-income instruments more appealing than stocks.
As a result, investors stand to lose more money amidst the continuous market decline. Conversely, holders of government treasury bonds and bills are poised to enjoy favourable returns, they added.
Besides, the stock market is experiencing heightened volatility due to global economic uncertainties stemming from the conflict between Iran and Israel.
Force selling has also contributed significantly to the continuous market decline, with brokerage houses selling clients' shares to adjust margin loans. The crisis in investor confidence is aggravated by regulatory uncertainty and upcoming tax policies, making it difficult for investors to make informed decisions.
ADN Telecom, ICB AMCL CMSF Golden Jubilee Mutual Fund, captured the DSE top gainer list followed by Rangpur Dairy & Food Products, Kohinoor Chemicals Company (Bangladesh), and Aftab Automobiles Ltd.
On the other hand, Khulna Printing & Packaging, and Central Pharmaceuticals captured the DSE top loser list followed by City Bank, GBB Power, and Olympic Accessories Ltd.
At the DSE, the top five most traded stocks were Asiatic Laboratories, Orion Infusion, Taufika Foods, Malek Spinning Mills, and Golden Son Ltd.
EBL Securities wrote in its daily market commentary that Dhaka stocks continued to bleed owing to the prolonged depressed market sentiment, with investors' massive selloffs being predominant in the majority of scrips as they preferred to safeguard their funds from further erosion amid the enduring pessimism pervading the trading floor.
The market observed a continuous tussle between buyers and sellers till mid-session; however, bears subsequently regained their dominance and led the market to prolong its downtrend with no major catalyst for a strong turnaround, the brokerage house further said in its commentary.
Pharma sector's 22.4% issues exerted the highest turnover on the sectoral front, followed by food at 15.1% and textile at 12.3%.
Almost all the sectors displayed dismal returns, of which travel 2.8%, financial institutions 2.3% and general insurance 2.1% exerted the most corrections on the bourse on Wednesday, while only IT with 2.3% exhibited some positive returns.
The port city bourse, CSE, also settled on red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) declined by 97.3 and 173.9 points, respectively.
