Economic Reporter :
The key index of Dhaka Stock Exchange (DSE) dipped below the ‘psychological’ threshold of 4,400-mark on Monday as worried investors continued their selling on major sectors’ shares.
Bangladesh Securities and Exchange Commission (BSEC) chief has blamed three reasons– GP-regulator tussle, retreat of foreign investors, misreport on TIN requirement-are behind the stock slide.
DSEX, the core index, went down by 26.51 points or 0.82 per cent to settle at 4,394, the lowest in more than 42 months since June 26, 2016, when the index was 4,380. Market operators said investors are struggling with ongoing depressed market outlook while gloomy macroeconomic outlook, soaring non-performing loan and foreign investors’ pulling funds out of the market worsened the situation.
A merchant banker said continuing fall in the private sector credit growth, declining exports, poor tax revenue collection and heavy government bank borrowing reflected a gloomy state of the country’s economy.
He noted that ongoing erosion in stock prices reduced investment ability of the market intermediaries and high net worth investors. The market opened on negative note and the downward trend continued until end of the session with no sign of reversal.
Two other indices also ended lower. The DS30 index, comprising blue chips, lost 7.05 points to finish at 1,494 and the DSE Shariah Index shed 5.53 points to close at 981.
Turnover, a crucial indicator of the market, also fell and amounted to Tk 2.63 billion, which was 2.95 per cent lower than the previous day’s turnover of Tk 2.71 billion. Losers took a strong lead over the gainers as out of 353 issues traded, 234 closed lower, 68 ended higher and 52 remained unchanged on the DSE trading floor. A total number of 94,832 trades were executed in the day’s trading session with trading volume of 101.39 million shares and mutual fund units. The market-cap of the DSE also fell to Tk 3,351 billion on Monday, from Tk 3,369 billion in the previous session.
The key index of Dhaka Stock Exchange (DSE) dipped below the ‘psychological’ threshold of 4,400-mark on Monday as worried investors continued their selling on major sectors’ shares.
Bangladesh Securities and Exchange Commission (BSEC) chief has blamed three reasons– GP-regulator tussle, retreat of foreign investors, misreport on TIN requirement-are behind the stock slide.
DSEX, the core index, went down by 26.51 points or 0.82 per cent to settle at 4,394, the lowest in more than 42 months since June 26, 2016, when the index was 4,380. Market operators said investors are struggling with ongoing depressed market outlook while gloomy macroeconomic outlook, soaring non-performing loan and foreign investors’ pulling funds out of the market worsened the situation.
A merchant banker said continuing fall in the private sector credit growth, declining exports, poor tax revenue collection and heavy government bank borrowing reflected a gloomy state of the country’s economy.
He noted that ongoing erosion in stock prices reduced investment ability of the market intermediaries and high net worth investors. The market opened on negative note and the downward trend continued until end of the session with no sign of reversal.
Two other indices also ended lower. The DS30 index, comprising blue chips, lost 7.05 points to finish at 1,494 and the DSE Shariah Index shed 5.53 points to close at 981.
Turnover, a crucial indicator of the market, also fell and amounted to Tk 2.63 billion, which was 2.95 per cent lower than the previous day’s turnover of Tk 2.71 billion. Losers took a strong lead over the gainers as out of 353 issues traded, 234 closed lower, 68 ended higher and 52 remained unchanged on the DSE trading floor. A total number of 94,832 trades were executed in the day’s trading session with trading volume of 101.39 million shares and mutual fund units. The market-cap of the DSE also fell to Tk 3,351 billion on Monday, from Tk 3,369 billion in the previous session.
