DSEX slips below 4,800 mark
The DSEX, the benchmark stock index of the country, has come down to 4,761 – the lowest since November 24, 2016
Stock market is in such a downward spiral that nothing is working to spark investors' sentiment.
The DSEX, the benchmark stock index of the country, has come down to 4,761 – well below 4,800 mark and the lowest since November 24, 2016.
Investors are scared to witness the slump that has pushed them into a zone of rapid capital erosion.
The DSEX has lost over one percent for the second consecutive day.
Floor traders at different brokerage firms told The Business Standard that the market had been trying to rise at first half-hour of Sunday's trading. But a more than usual selling pressure did not let the index stay above the psychological level of 4,800 mark.
"There is a risk reduction attempt in the market now," said an analyst of a top equity research team.
Investors, as expected, are trying to reduce their exposure in stocks so that their portfolio health is not ruined when the market goes further down, he added.
There is a moderate pressure of forced selling too, which is a result of margin call from brokers, said a floor trader, seeking anonymity.
Bears have a tight grip on the market, allowing no headlines about policy support to boost investors' confidence.
Banks are reportedly slow to get low-interest fund from the Bangladesh Bank for investments in the capital market as only a single bank so far has applied for such fund even after 20 days of the introduction of the policy support.
"Enough is enough; stop further losses." This is what is the market is trying to say now, perhaps, as losers are widely outnumbering the gainers.
At the Dhaka Stock Exchange (DSE), only 41 scrips gained price and 267 lost, while price of 37 of the listed securities remained unchanged on Sunday.
In the last five trading sessions until Sunday, the DSEX has lost over three percent that extended the year-to-date loss to 11.6 percent.
Two other indices at the DSE – blue chip index DS30 and the Shariah index DSES – also have lost over 10 percent each since January 1 this year.
Investors' decreased participation in buying and selling on Sunday resulted in a turnover of Tk298 crore at the DSE, nine percent down from Thursday.
Jute, textile, pharmaceutical accessories, pharmaceuticals and tobacco had the highest gain on Sunday.
Ceramic, animal food and health, textile-knitting, textile-spinning, and cement sectors experienced the largest losses.
At the Chittagong Stock Exchange (CSE), key indices managed to minimise losses in percentage scale compared to its counterparts at the capital city bourse.
The CSCX, the broad-based index there, has lost 0.97 percent to close at 8,814.
Trade volume too increased over 10 percent there to reach Tk 14.33 crore.