Business Desk :
Shares on the Dhaka Stock Exchange declined on Tuesday for the fourth consecutive day owing to persisting economic uncertainty, runaway inflation and the latest floods.
The DSEX, the benchmark index of the premier bourse in Bangladesh, lost more than 45 points, or 0.72 per cent, to close at 6,311.65.
The DSES Index, which represents the Shariah-based companies, ended at 1,378.91, down 9.11 points or 0.66 per cent. Similarly, the DS30 Index, which consists of the blue-chip firms, slipped 19.16 points, or 0.83 per cent, to 2,295.42.
Turnover, an important indicator of the market, fell nearly 12 per cent to Tk 725 crore. It was Tk 822 crore on Monday. Losers outnumbered gainers, with 57 securities advancing, 282 declining and 53 remaining unchanged.
Investors are in a selling mood owing to persisting uncertainty from the pandemic and the Ukraine war, a lack of adequate incentives in the budget, higher inflation and the spreading floods.
International Leasing Securities Ltd in its daily market review said that the risk-averse investors kept their selling spree on sector-specific issues fearing the macroeconomic outlook.
The rising inflation is reducing the real income of investors and the appreciating dollar is decreasing the value of foreign investors’ portfolio.
Meanwhile, investors preferred to hold cash and cut their participation in the market, it said.
Inflation surged to an eight-year high of 7.42 per cent in May in the country, driven by a hike in food costs, while the local currency has kept falling against the US dollar because of a fall in the foreign currency reserves, driven by abnormally high import bills.
Among the individual companies, Imam Button Industries topped the gainers’ list rising 10 per cent.
Meghna Insurance, Progressive Life Insurance, Emerald Oil Industries, Meghna Cement Mills, Fu Wang Food, Progressive Life Insurance, Al-Haj Textile Mills and Bangladesh Industrial Finance Company posted major gains.
