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28 March 2024


Business Insider Bangladesh

Dhaka stocks shed 1% as economic worries unnerve investors

BI Report || BusinessInsider

Published: 21:23, 11 May 2022   Update: 21:36, 11 May 2022
Dhaka stocks shed 1% as economic worries unnerve investors

DSE indices on Wednesday

Dhaka stocks fell sharply Wednesday over growing fears that Bangladesh may mimic the course of Sri Lanka’s recent economic collapse.

On the day, DSEX, the benchmark index of the bourse lost over 73 points or 1.10 percent to settle at 6,591. It is the highest decline in two months. Earlier, on March 7, DSEX lost 182 points.

The session also saw all the indices, turnover and share prices of most companies decreased.

In the first two working days of this week, investors began to eye a profitable market with the rise in index and transactions. However, it faded in the next two days.

Market insiders say that the Russia-Ukraine war and the political instability in South Asian countries have affected the country’s capital market. In particular, the recent collapse of the Sri Lankan government due to the economic crisis has fermented fear in the minds of many investors.

They say various types of writing about this on social media are influencing investors’ trading habits.

A top capital market official told the Business Insider Bangladesh that the economic crisis in Sri Lanka is having a psychological effect on investors. Some are fearmongering on social media that the economy of Bangladesh may also soon fall into trouble, he said.

The official’s words found to be true while visiting several brokerage houses. Investors were seen discussing the Sri Lanka issue in most of the houses.

Several investors told this reporter that a similar situation like Sri Lanka may befall in Bangladesh. As a result, they want to monitor the situation for a few days without investing in stocks.

Among other indices, shariah-based DSES decreased 15.47 points or 1.06 percent and blue-chip DS30 declined by 15.13 points or 0.62 percent.

The DSE on the day saw a turnover of Tk 1,135.70 crore, which is Tk 122.30 crore less than the previous session.

Shares of the 379 companies traded on the day, of which only 35 firms witnessed an increase in price, 323 slid and 21 remained unchanged.

Not a single company reached the maximum limit of price increase on the day. The company with the highest price increase added 6.96 percent. In contrast, the price of about 20 companies fell near the maximum limit of decline.

Shares of RD Food were the most-traded by value on the DSE. The company’s shares worth Tk 98.54 crore were traded on the day.

ACI Formulation, which was in the second place, had a turnover of Tk 77.05 crore and Beximco Limited was in the third place with a share transaction of Tk 47.12 crore.

Among the companies on the list of top ten-traded shares were JHRML, Shinepukur Ceramics, Fortune Shoes, Genex Infosys, IPDC, Unique Hotel and Eastern Housing Limited.

The pharmaceuticals and chemicals sector rose to the top position in terms of transactions. The total turnover in this sector was Tk 158.2 crore, which was 15.26 percent of the total turnover.

The food and allied sector were at the second-highest position of turnover with shares worth Tk 143.4 crore changing hands and the miscellaneous sector at third position with a transaction worth Tk 128.52 crore.

Meanwhile, the overall index CASPI of the Chittagong Stock Exchange (CSE) decreased 202 points to 19,329 points and securities worth Tk 25.80 crore were traded on the day.

 

Nagad
Monetary Policy Stance
Budget 2020-21
Walton