Stocks in the red for 2nd day amid regulatory turmoil
On the day, the key index DSEX of the Dhaka Stock Exchange (DSE) dropped 30 points to close at 5,681, marking the second consecutive day of decline
Stocks continued its losing streak on Tuesday (17 September) as investors remained wary amid ongoing turmoil within the securities regulator.
On the day, the key index DSEX of the Dhaka Stock Exchange (DSE) dropped 30 points to close at 5,681, marking the second consecutive day of decline. The blue-chip index DS30 fell by 16 points to settle at 2,068, while the shariah index DSES ended 8 points lower at 1,238.
The turnover value on the Dhaka bourse also fell by 5% to Tk635 crore as the investors' participation decreased.
During the session, 156 issues advanced, while 182 declined and 63 remained unchanged.
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Moreover, the port city bourse Chittagong Stock Exchange (CSE) also ended in the red terrain as its all-share price index CASPI dropped 41 points to settle at 16,077, and the general index CSCX ended 28 points lower at 9,688.
EBL Securities in its daily market commentary said the prime index of the Dhaka bourse closed in red territory for the second consecutive session as sellers regained control after a short-lived positive momentum till the mid-session due to weakened strength of the market trend.
Despite the market opening higher riding on the price appreciation of particular sector-specific issues, risk-averse investors' cautious selling approach eroded most of the early gains and pushed the core index to dip into negative territory again, it added.
Market insiders said turmoil within the Bangladesh Securities and Exchange Commission (BSEC) escalated over the appointment of independent directors at the Dhaka bourse, leading to the resignation of BSEC Commissioner ATM Tariquzzaman. Earlier, the Ministry of Finance had issued a three-month notice for his removal last week.
Additionally, reforms within the BSEC are underway under the new chairman. The commission has already placed one of its executive directors on special duty. Meanwhile, other officials are on edge as the Anti-Corruption Commission has begun investigations into potential misconduct within the BSEC, according to sources at the BSEC.
Market insiders said allegations have surfaced against several brokerage firms, including Moshihor Securities, Dhanmondi Securities, and PFI Securities, accusing them of embezzling investors' funds. This has further eroded market confidence, contributing to the ongoing sluggish trading sessions.
The DSE brokers association sent a letter to the finance ministry on Sunday to form a taskforce for reforming the capital market aiming to restore the investor confidence.
According to the EBL Securities report, Sonali Aansh Industries led the top turnover chart on Tuesday with a turnover of Tk21.86 crore, accounting for 3.4% of total turnover, followed by Linde Bangladesh Tk19.65 crore, and Sea Pearl Beach Resort with Tk19.34 crore.
In the gainer's list, Bd Thai Aluminium, under the B category, topped with a 10% increase to Tk15.40 per share, followed by Global Heavy Chemicals, which rose 10% to Tk31.90, and ICB AMCL CMSF Golden Jubilee Mutual Fund, up 9.67% to Tk10.20.
On the losing side, National Tea topped the list with an 8.73% decline to Tk405.5 per share, followed by Libra Infusions, which fell 6.10% to Tk995.9, and Paper Processing and Packaging Limited, down 6% to Tk134.30.
