Stocks drop for sixth day
BSEC holds meeting with market intermediaries today
Dhaka stocks dropped for the sixth day on Monday as investors unnerved by the recent downward trend on the market continued selling shares to avoid any further losses.
DSEX, the key index of the Dhaka Stock Exchange, lost 1.24 per cent, or 89.18 points, to close at 7,097.27 points on Monday.
The DSEX lost 271 points in the last six sessions.
The core index started falling from the beginning of Monday’s session and descended more firmly as the session progressed as investors went for panic-driven share sales following the recent downward movements on the market, market operators said.
The DSEX lost 129 points at one point of the day on panic-driven share sales but recovered some losses at the end of the session.
The recent sluggishness on the market provoked investors to liquidate their investments, market operators said.
After hitting an all-time high on September 9, the market has become volatile due to a host of reasons, including a tussle between the Bangladesh Bank and the Bangladesh Securities and Exchange Commission over issues related to the stock market, continued sales by foreign investors and an abnormal surge in share prices of many fundamentally-weak companies, they said.
Besides, the BSEC has been investigating abnormal price hike of shares of nine companies by forming a four-member inquiry committee on August 10.
The regulator has summoned a number of authorised representatives in connection with the investigation that might fuel the selling pressure on Monday, market operators said.
The BSEC will hold a meeting with market intermediaries today to discuss the current market situation and find ways to increase the liquidity flow on the market, BSEC officials said.
Among the prominent companies, share prices of Square Pharmaceuticals, British American Tobacco Company, Beximco Pharmaceuticals, Grameenphone and BRAC Bank plunged on Monday.
Some investors continued booking profits after a surge in share prices of most of the companies before the recent downward trend, market operators said.
EBL Securities in its daily market commentary said, ‘Investors were on the sideline due to corrections as they think that the market may decline further as the bull run had overheated the market earlier.’
Average share prices of non-bank financial institution, textile, general insurance and pharmaceutical sectors dropped by 2.6 per cent, 2.3 per cent, 1.2 per cent and 1.1 per cent respectively.
Turnover on the DSE declined to Tk 1,393.83 crore on Monday from Tk 1,655.37 crore in the previous session.
Of the 374 scrips traded on the DSE on Monday, 324 declined, just 33 advanced and 17 remained unchanged.
DS30, a composition of 30 large capitalised companies, dropped by 0.98 per cent, or 26.58 points, to close at 2,678.26.58 points on Monday.
Shariah index DSES shed 1.36 per cent, or 21.14 points, to settle at 1,525.17 points.
DSMEX Index, an index of the SME platform, slid by 4 per cent, or 29.87 points, to close at 716.45 points on Monday.
The index soared to 1,185.86 points on its second day of its inception on October 3 but since then it has been declining.
Orion Pharmaceuticals led the turnover chart with its shares worth Tk 89.76 crore changing hands on the day.
Delta Life Insurance, British American Tobacco Company, Fortune Shoes, BEXIMCO, IFIC Bank, NRBC Bank, Genex Infosys and Power Grid Company were the other turnover leaders on the day.