DGEN falls by 5.6 pc in volatile trading

Staff correspondent
Both the general index and turnover of Dhaka Stock Exchange fell heavily in last week in volatile trading on panic and rumours about possible tax measures for the capital market in the next national budget and proposed security measures.
Aggravated investors took to the streets yet again last week in protest against the relentless fall in share prices and blamed the government for its indolence to stabilise the market. 
DGEN, the key index of the bourse shed 320.46 points or 5.60 per cent to close the week at 5,397.61 points after the DSE had returned to black in the previous week ending a five-week bear run.
Investors in the last few weeks had remained sceptical about inclusion of tax on capital gain and making taxpayer’s identification number mandatory for opening and maintaining beneficiary owner’s accounts in the forthcoming budget. The rumours turned into panic in last week as different government high-ups made some contradictory remarks on the issues. 
The finance minister is yet to clear the government’s stance on the issues, although several ruling party lawmakers asked for his clarification in this regard and also criticised his role, or rather lack of it, in stabilising the market.
The home minister also announced a plan to make national identity card mandatory for the investors and install close-circuit cameras in Motijheel area to step up security of the DSE.
The proposed security measures also intensified panic among the investors last week.
‘All these issues made the investors panicked and jittery and they went for blanket sell-off in last week,’ said a stockbroker.  
Besides a lack of confidence among the investors, the market last week also suffered from a severe liquidity crisis as the average daily turnover dropped by a whooping 31.63 per cent to Tk 351.07 crore. The total turnover also dipped by 14.54 per cent to Tk 1,755.35 crore from Tk 2,054.06 in the previous week. 
Experts and market operators claimed selling pressure from subsidiary companies of the banks to meet the single-party exposure limit caused the market to fall.
The Bangladesh Bank in a circular on Thursday said it had deferred the deadline for adjusting the single-exposure limit from August 31 to December 31.
On Sunday, the DGEN shed a massive 205.87 points as panic-driven investors went for sell-offs, following the security measures proposed by the home minister on the previous day.
The downtrend in the market continued on Monday, with the DGEN plunging by 135.89 points or 2.46 per cent to close the day at 5,376.30 points.
The market rebounded on Tuesday by advancing 67.98 points or 1.26 per cent as the investors became hopeful about government steps after a number of ruling party lawmakers had blasted Muhith for failing to stabilise the market.
The one-day hype faded fast on Wednesday with the DGEN falling by 151.74 points, triggering a fresh street protest in Motijheel. General investors staged rowdy demonstrations in front of the DSE building, demanding immediate resignation of the finance minister, the central bank governor, and the DSE president.
The investors continued to protest on Thursday as the market shed 105.07 points or 1.98 per cent to close the day at 5,397.61 points.
The daily turnover of the bourse hit a four-month low on the day to Tk 296.48 crore.
Out of 261 issues traded in the week, the prices of 246 declined and only 15 gained.
MI Cements Factory, which was listed after a long-lasting debate, topped the list of turnover leaders in last week, with 47,96,100 shares worth Tk 63.94 crore changing hands. 
The rest of the top-10 turnover leaders were Titas Gas, Beximco Limited, Aftab Automobiles, Peoples Leasing, Bextex Limited, United Airways, BSRM Steels Limited, Square Pharma, and RN Spinning.