Market slide continues for third day with no buyers for Peoples Leasing
Bangladesh equities witnessed another bearish trading session today, extending the losing spell to the third day and pushing Dhaka Stock Exchange’s broad-based benchmark index (DSEX) below 5300 mark.
DSEX lost 0.73 percent at the end of the trading session for the first time since 28 May. The broad index closed at 5280. DS30, the blue-chip index of DSE, lost 0.56 percent on a selling pressure.
However, the market turnover increased 20.78 percent to cross Tk. 512 crore, indicating selling pressure by big investors.
Stock Market Analysts told The Business Standard that attempts to wind-up Peoples Leasing and Financial Services Ltd (PLFSL), a scam-hit non-banking financial institute, added to the bearish sentiment today.
“The market was in a sell pressure, but investors were hoping for a rebound. Negative sentiment since morning was due to government’s position to liquidate PLFSL,” said Abdullah Al Mamun, a senior manager at Al-Muntaha Securities Ltd, brokerage firm.
“PLFSL had no buyer for its stocks today, but the worst thing is: it dragged all the financial stocks down with it, as it reminded investors about the risks of owning financial businesses. It had a serious impact on market indices today” he added.
The NBFI (Non-Banking Financial Institution) shares closed at Tk. 3.6, a 10 percent fall over the day’s trading session, as PLFSL case caught the investors panicked.
According to Companies Act 1994, shareholders are the last group to receive any residual asset in case of any company’s winding-up.
Indices at Chittagong Stock Exchange (CSE) suffered smaller loss compared to that of its Dhaka counterpart. CSCX, the broad index of the port-city burse, lost 0.53 percent to close at 9826.34, while turnover increased proportionately.
Market movement was driven by negative changes in the shares of Banks and Pharmaceuticals with the highest gains going into Mutual Fund, Pharmaceutical Accessories, Electric Appliance, NBFI, and Fuel Refinery sectors.