Dhaka stocks snap six-day gaining streak

Infographic: TBS

The benchmark index of the country's premier bourse plunged into the red after breaking the six-day gaining streak on Wednesday as investors' confidence faded for fear of further economic slowdown due to the government's austerity measures.

DSEX, the key index of the Dhaka Stock Exchange (DSE), fell 35 points or 0.56% to close at 6,280, which had increased 167 points in the previous six sessions.

The port city bourse Chittagong Stock Exchange's all share price index CASPI also lost 66 points to 18,503 at the end of the day.

The EBL Securities said in its daily market commentary that the equity indices of the Dhaka bourse slipped into the red trajectory as investors' concerns loomed, resulting from the possibility of a sluggish economic output due to the recent austerity measures taken by the government to reduce energy consumption.

It added that the market had been experiencing a bullish trend for the past six sessions as the Bangladesh Bank made attempts to control the forex instability as well as the government's announcement to adjust the fuel prices according to the global markets.

But the momentum was halted when the government instructed a reduction in the working hours of government offices and banks, which exacerbated the concerns of jittery investors, enticing them to offload their holdings and book the profits earned from the recent uptrend of the market, the review reads.

Besides, market insiders said, the DSE managing director's sudden resignation has worsened investors' sentiment as they feel shocked, which is also a reason behind Wednesday's fall in share prices.

Meanwhile, the Dhaka bourse observed a decrease in participation as the total turnover declined by 24% and stood at Tk1,133 crore as the trading time was reduced by ten minutes.

Investors were more active in buying and selling shares of textile sector companies, where the sector topped the daily turnover chart, which was followed by pharma and miscellaneous.

In addition, investors got much return from the services sector on the day, followed by non-bank financial institutions and textiles.

On the DSE top ten gainers' table, weak company Union Capital grabbed the top position as its share price jumped 10%, followed by Metro Spinning and Prime Finance.

First Finance was the top on the looser table, followed by Kay and Que, and Sunlife Insurance.