Kazi Zahidul Hasan :
Dhaka stocks plunged for the sixth consecutive trading sessions on Sunday, as investors were biting their nails in the sideline amid political tensions and concern over selecting a strategic partner of the country’s prime bourse.
The prime index of Dhaka Stock Exchange, DSEX, lost 270 points in the last six sessions.
On Sunday, the DSEX index lost 74.85 points or 1.26 per cent to close at 5823.12, the lowest since August 20 last year.
Two other indices of the premier bourse also saw sharp decline. The DS30 index, comprising the blue-chips, fell 28 points or 1.30 per cent to finish at 2,142 and DSES Shariah index dropped 14 points or 1.03 per cent to close at 1,361.
Out of the 336 issues traded, 302 closed lower, 23 higher and 11 remained unchanged on the DSE trading floor.
The total turnover, however, increased to Tk 384 crore, which was 32 per cent higher than the previous day’s 20 month-low turnover of Tk 290 crore.
The Chittagong Stock Exchange (CSE) also closed lower on Sunday with CSE All Share Price Index – CASPI – shedding 243 points to settle at 18,008 and Selective Categories Index – CSCX – falling 151 points to finish at 10,867 with 173 issues closed lower, 38 ended higher and 13 remained unchanged.
The total trading turnover at the CSE stood at Tk 15.20 crore.
“The market remained volatile and went down for the last sixth trading days. But I do not see any ‘rational’ reason behind the current market trend,” Dr AB Mirza Azizul Islam, a former chairman of the Security and Exchange Commission, told The New Nation yesterday.
He said there’s nothing really happening on the fundamentals fronts to send the market down. The market plunged amid lower investors participation. Selling pressure on large capitalised stocks also pushed the market down.
“The current uncertainty over selecting the foreign strategic partner of Dhaka Stock Exchange (DSE) and political tension has made the investors shaky to involve in large market participation. They kept them off to involve in trading and sold their shares to avid further loss sending the market down,” said Dr AB Mirza Azizul Islam
He mentioned that stock investors in Bangladesh are ‘supersensitive.’ They remain sideline when any uncertainly arise in the country’s economic and political fronts. “There is no doubt many investors are biting their nails in fear of what’s to come amid fresh tension over the country’s political arena and tussle between the two stock regulators over selection of the DSE’s strategic partner.
“The market regulator should immediately resolve the strategic partnership issue to ease tension of the investors as well as restore their confidence on the market,” he added.
Dr AB Mirza Azizul Islam, a former finance adviser of the caretaker government, said, Dhaka Stock Exchange and Bangladesh Securities and Exchange Commission are in loggerhead over the strategic partnership for the premier bourse.
“The DSE board unanimously chose a consortium of the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) as the strategic partner of the premier bourse. I think it took the right decision considering the Chinese consortium’s experience, capacity and technological and financial soundness. Even it offered higher prices to purchase shares of DSE than the Indian consortium,” he added.
Dr AB Mirza Azizul Islam, however, disagreed with liquidity crisis theory that pushed down the market. “Banks and financial institutions have enough liquidity and Bangladesh Bank did not take credit squeeze policy to curb lending in the market. Even, it set a higher credit growth target for the private sector in its latest monetary policy. So, it is a rumour that the market suffered for liquidity crisis.
Dhaka stocks plunged for the sixth consecutive trading sessions on Sunday, as investors were biting their nails in the sideline amid political tensions and concern over selecting a strategic partner of the country’s prime bourse.
The prime index of Dhaka Stock Exchange, DSEX, lost 270 points in the last six sessions.
On Sunday, the DSEX index lost 74.85 points or 1.26 per cent to close at 5823.12, the lowest since August 20 last year.
Two other indices of the premier bourse also saw sharp decline. The DS30 index, comprising the blue-chips, fell 28 points or 1.30 per cent to finish at 2,142 and DSES Shariah index dropped 14 points or 1.03 per cent to close at 1,361.
Out of the 336 issues traded, 302 closed lower, 23 higher and 11 remained unchanged on the DSE trading floor.
The total turnover, however, increased to Tk 384 crore, which was 32 per cent higher than the previous day’s 20 month-low turnover of Tk 290 crore.
The Chittagong Stock Exchange (CSE) also closed lower on Sunday with CSE All Share Price Index – CASPI – shedding 243 points to settle at 18,008 and Selective Categories Index – CSCX – falling 151 points to finish at 10,867 with 173 issues closed lower, 38 ended higher and 13 remained unchanged.
The total trading turnover at the CSE stood at Tk 15.20 crore.
“The market remained volatile and went down for the last sixth trading days. But I do not see any ‘rational’ reason behind the current market trend,” Dr AB Mirza Azizul Islam, a former chairman of the Security and Exchange Commission, told The New Nation yesterday.
He said there’s nothing really happening on the fundamentals fronts to send the market down. The market plunged amid lower investors participation. Selling pressure on large capitalised stocks also pushed the market down.
“The current uncertainty over selecting the foreign strategic partner of Dhaka Stock Exchange (DSE) and political tension has made the investors shaky to involve in large market participation. They kept them off to involve in trading and sold their shares to avid further loss sending the market down,” said Dr AB Mirza Azizul Islam
He mentioned that stock investors in Bangladesh are ‘supersensitive.’ They remain sideline when any uncertainly arise in the country’s economic and political fronts. “There is no doubt many investors are biting their nails in fear of what’s to come amid fresh tension over the country’s political arena and tussle between the two stock regulators over selection of the DSE’s strategic partner.
“The market regulator should immediately resolve the strategic partnership issue to ease tension of the investors as well as restore their confidence on the market,” he added.
Dr AB Mirza Azizul Islam, a former finance adviser of the caretaker government, said, Dhaka Stock Exchange and Bangladesh Securities and Exchange Commission are in loggerhead over the strategic partnership for the premier bourse.
“The DSE board unanimously chose a consortium of the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) as the strategic partner of the premier bourse. I think it took the right decision considering the Chinese consortium’s experience, capacity and technological and financial soundness. Even it offered higher prices to purchase shares of DSE than the Indian consortium,” he added.
Dr AB Mirza Azizul Islam, however, disagreed with liquidity crisis theory that pushed down the market. “Banks and financial institutions have enough liquidity and Bangladesh Bank did not take credit squeeze policy to curb lending in the market. Even, it set a higher credit growth target for the private sector in its latest monetary policy. So, it is a rumour that the market suffered for liquidity crisis.
