Dhaka stocks hit 21-month low

The Dhaka stocks hit its 21-month low yesterday thanks to the thin participation of institutional investors who adopted a wait-and-see policy ahead of the upcoming national election.

Dhaka Stock Exchange's key index—DSEX—lost 79.21 points to 5,251.95 yesterday while giving up a total of 129.56 points in the last two trading sessions.

Investors are losing money fast as the bourse lost Tk 7,944.81 crore or 2.04 percent from its market capitalisation in the last two sessions.

“Political uncertainty is the main reason behind the recent fall,” said the managing director of a leading brokerage house, requesting anonymity. Investors become very careful as they think the market may fall further, he said.

“They are keeping their money in the accounts so that they can buy stocks at lower prices. This has also accelerated the fall.”


There is no need to panic regarding the upcoming election as no political turmoil has taken place yet, said Minhaz Mannan Emon, a director of the premier bourse.

“In the past, we witnessed turmoil ahead of an election, but this year the situation is very normal.”

Besides, the director said, the Investment Corporation of Bangladesh (ICB) is going to invest Tk 1,500 crore after getting funds by selling a bond worth Tk 2,000 crore.

The process to issue the bond is underway, he said.

Emon said stock brokers are also going to invest Tk 947 crore in the market from the proceeds they will get by selling 25 percent of their stakes in the DSE to a Chinese consortium.

Turnover, another important indicator of the market, declined 1 percent to Tk 435.32 crore.

Some 11.51 crore shares and mutual fund units changed hands on the bourse. Of the traded issues, 62 advanced, 232 declined and 50 closed unchanged.

Khulna Power Generation dominated the turnover chart with 21.10 lakh shares worth Tk 24.62 crore changing hands, followed by Dragon Sweater, Summit Power Generation and Square Pharmaceuticals.

Central Pharmaceuticals was the best performer of the day with a 8.80 percent gain while BSRM Ltd was the worst loser, shedding by 13.63 percent.

Chittagong stocks also fell, with the bourse's benchmark index, CSCX, declining 141.86 points, or 1.42 percent, to finish at 9,800.50.

Losers beat gainers as 165 declined, 41 advanced and 26 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 64.80 lakh shares and mutual fund units worth Tk 18.18 crore.
Source: https://www.thedailystar.net

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