The Dhaka Stock Exchange (DSE) has maintained its losing streak for the sixth consecutive day, leading to a total market capitalisation decline of around Tk12,000 crore.
Just a day ago, market capitalisation at DSE stood at Tk3,74,311 crore, which fell to Tk3,72,468 crore today. Benchmark index of the country’s premier bourse, DSEX, also declined by 192.32 points in one day.
Speaking about the dire condition of the capital market, DSE Brokers' Association (DBA) President, Shakil Rizvi, said there is a lack of confidence among investors, as well as a liquidity crisis in the market.
He blamed the fall of indices on the loss of share value of two large-cap companies – Grameenphone (GP) and People’s Leasing.
“Subscription of the initial public offering of Ring Shine Textiles will continue till September 9 and the company will raise Tk150 crore from the market,” Shakil added, explaining that this had created a liquidity crisis in the market.
However, he expressed optimism about the market rising again after the IPO proceedings of Ring Shine ends and Grameenphone resolves its dispute with the Bangladesh Telecommunication Regulatory Commission.
Against this backdrop, representatives of DSE, the Chittagong Stock Exchange (CSE) and DBA are going to meet with the Bangladesh Securities and Exchange Commission (BSEC) on Thursday evening.
In the meeting, Shakil Rizvi said they will discuss the ways forward to amend the Securities and Exchange Rules 1987. They will also discuss the current market situation and possible solutions to it.
Following the losing streak, the broad-based index of DSE dropped 20.68 points to end the day at 4,986. DSE Shariah Index (DSES) lost eight points, and stood at 1,158, while the blue-chip index DS30 dropped 10.69 points to 1,748.
Turnover was also 5% lower than the previous day, totalling Tk375 crore.
Of the total 351 issues traded on DSE today, 132 gained, 166 suffered losses and values of 53 securities remained unchanged.
Analysis of trading information reveals that the share price of GP declined by Tk7.50 to close the day at Tk287.20, reaching a new record low in the last two years.
The share price of British American Tobacco dropped Tk18.80 to end the day at Tk1,173.
Monno Ceramic Industries Ltd bagged the highest amount of transactions worth Tk20 crore. In the last one month, the share price of the company increased 78%. Yesterday, its share price declined by 5.5%, and traded at Tk217.
Share price of newly-listed Sea Pearl Beach Resort & Spa Limited increased the most, going up by 9.81%, standing at Tk30.2 at the end of the day. In the third quarter of 2018-19 fiscal, the company earned Tk0.61 per share.
The price of mutual funds fell on a massive scale today, including that of Reliance Mutual Fund 1, Grameen Mutual Fund Scheme 2, IFIL Islamic Mutual Fund 1, ICB Third NRB and ICB Sonali Bank Mutual Fund 1.
Meanwhile, CSCX, the benchmark index of the Chittagong Stock Exchange, declined 366 points in the last six days. The index declined by 54 points today, ending the day at 9,235 points.
For the last five consecutive days, the index had been experiencing a losing streak. Total turnover was Tk16 crore.
Of the total 251 issues traded on the day, 129 suffered losses and 89 gained.