Economic Reporter :
Stocks slipped back to the red on Monday, after a single-day break as risk-averse investors went on selling binge on sector-wise stocks.
Market analysts said the investors have been suffering a crisis of confidence for long and the recent fall of the index mounted the crisis among them.
They said fund crisis is not the main problem for the capital market but lack of good governance and structural weaknesses of institutions are the responsible for the unstable situation of the market.
Centre for Policy Dialogue (CPD) on Sunday identified five issues that are weakening the markets.
The issues are poor-quality initial public offerings (IPO), anomalies in financial reporting, lack of transparency in beneficiary owner’s (BO) accounts, suspicious trading in secondary market and questionable role of institutional investors.
Khondaker Golam Moazzem, Research Director of the CPD, said, “The lack of good governance and structural institutionalisation is fuelling a crisis in the stock market, so when the government provides liquidity support the index rises temporarily but not for long.”
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 33.72 points to settle at 4,678, after gaining 29 points in the previous day. Two other indices also ended lower. The DS30 index, comprising blue chips, fell 11.74 points to finish at 1,626 and the DSE Shariah Index lost 8.62 points to close at 1,074.
Turnover, another important indicator of the market, also fell to Tk 2.69 billion, which was 17 per cent lower than the previous day’s turnover of Tk 3.25 billion.
The losers took a strong lead over the gainers as out of 354 issues traded, 242 ended lower, 78 closed higher and 34 issues remained unchanged on the DSE trading floor.
A total of 98,844 trades were executed in the day’s trading session with trading volume of 94.53 million securities.
The market capitalisation of the DSE also fell to Tk 3,547 on Monday, from Tk 3,570 billion in the previous session.
National Tubes continyed to top the turnover chart with shares worth Tk 129 million changing hands, followed by BRAC Bank, Northern Jute, Standard Ceramic and VFS Thread Dyeing.
Appollo Ispat was the day’s best performer, posting a gain of 6.81 per cent while Weatren Marine Shipyard was the worst loser, losing 12 per cent.
The port city’s bourse, Chittagong Stock Exchange, also ended lower with the CSE All Share Price Index – CASPI-losing 75 points to settle at 14,225 and the Selective Categories Index – CSCX -shedding 45 points to finish at 8,645.
Here too, the losers beat gainers, as 160 issues closed lower, 73 ended higher and 30 remained unchanged on the CSE trading floor.
The port city’s bourse traded 4.99 million shares and mutual fund units worth Tk 111 million in turnover.
Stocks slipped back to the red on Monday, after a single-day break as risk-averse investors went on selling binge on sector-wise stocks.
Market analysts said the investors have been suffering a crisis of confidence for long and the recent fall of the index mounted the crisis among them.
They said fund crisis is not the main problem for the capital market but lack of good governance and structural weaknesses of institutions are the responsible for the unstable situation of the market.
Centre for Policy Dialogue (CPD) on Sunday identified five issues that are weakening the markets.
The issues are poor-quality initial public offerings (IPO), anomalies in financial reporting, lack of transparency in beneficiary owner’s (BO) accounts, suspicious trading in secondary market and questionable role of institutional investors.
Khondaker Golam Moazzem, Research Director of the CPD, said, “The lack of good governance and structural institutionalisation is fuelling a crisis in the stock market, so when the government provides liquidity support the index rises temporarily but not for long.”
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 33.72 points to settle at 4,678, after gaining 29 points in the previous day. Two other indices also ended lower. The DS30 index, comprising blue chips, fell 11.74 points to finish at 1,626 and the DSE Shariah Index lost 8.62 points to close at 1,074.
Turnover, another important indicator of the market, also fell to Tk 2.69 billion, which was 17 per cent lower than the previous day’s turnover of Tk 3.25 billion.
The losers took a strong lead over the gainers as out of 354 issues traded, 242 ended lower, 78 closed higher and 34 issues remained unchanged on the DSE trading floor.
A total of 98,844 trades were executed in the day’s trading session with trading volume of 94.53 million securities.
The market capitalisation of the DSE also fell to Tk 3,547 on Monday, from Tk 3,570 billion in the previous session.
National Tubes continyed to top the turnover chart with shares worth Tk 129 million changing hands, followed by BRAC Bank, Northern Jute, Standard Ceramic and VFS Thread Dyeing.
Appollo Ispat was the day’s best performer, posting a gain of 6.81 per cent while Weatren Marine Shipyard was the worst loser, losing 12 per cent.
The port city’s bourse, Chittagong Stock Exchange, also ended lower with the CSE All Share Price Index – CASPI-losing 75 points to settle at 14,225 and the Selective Categories Index – CSCX -shedding 45 points to finish at 8,645.
Here too, the losers beat gainers, as 160 issues closed lower, 73 ended higher and 30 remained unchanged on the CSE trading floor.
The port city’s bourse traded 4.99 million shares and mutual fund units worth Tk 111 million in turnover.
