THE Prime index of the Dhaka Stock Exchange (DSE) hits fresh 16 month-low as stocks fell further by the week-end due to investors remaining shaky amid gloomy market outlook. The market opened with a negative note amid high volatility, which sustained throughout the trading session. There is a common perception that the bourse is a victim of political instability and only an improvement of the situation may pull it up again. DSEX, the prime index of the DSE – DSEX dipping below 4,300-mark and ended at 4,283.24 points, shedding 25.20 points or 0.58 percent. The two other indices also ended lower. The DS30 index, comprising blue chips lost 2.13 points or 0.13 percent to close at 1,632.24 points. The DSE Shariah Index (DSES) shed 3.92 points or 0.37 percent to close at 1,044.98 points. The total turnover on DSE also came down to Tk 4.39 billion, registering a decline of 4.56 percent over the previous session’s value of Tk 4.60 billion.The losers took a lead over the gainers as out of 309 issues traded, 197 declined, 82 advanced and 30 remained unchanged. United Power Generation and Distribution Company continued to dominate the top turnover chart with shares worth Tk 526.74 million changing hands followed by Western Marine, ACI, KPCL and MJL BD. The port city bourse, Chittagong Stock Exchange (CSE) also closed lower with its Selective Categories Index – CSCX – lost 33.55 points to close at 8,053.37 points. Losers beat gainers 157 to 61, with 20 issues remaining unchanged at the port city bourse that traded 10.13 million shares and mutual fund units with turnover value of Tk 372.32 million.Lack of confidence and direction was clearly visible among the investors as the market showed a lot of volatility throughout the whole trading session.The market kept on the reverse gear, wiping out investors’ gain from risk taking, IDLC Investments said in its regular analysis. The retreat in stock prices pushed the index down, which hit the lowest since December 2013.Markets will go up and down depending on the mood of the investors-hence the coining of the term ‘animal spirits’ by the famous economist Keynes. The lack of confidence and direction remains the residue of the continuation of the general perception of instability which people think are becoming part of the social and political culture of the land. It will only change if the perception of a situation of disequilibrium changes among the people who trade in shares and it is unlikely to happen anytime soon as the economic situation is tied in to the political one. We fear that investors will be in for a rough ride for most of the remainder of the year as hopes for a situation of equilibrium remain distant.
