Dhaka stocks witnessed sharp fall Sunday, as all three indices plunged more than two per cent, sparking protest again by the angry investors in front of the Dhaka Stock Exchange(DSE) building.
The benchmark General Index of the Dhaka Stock Exchange, DGEN, shed 166.08 points or 2.78 per cent to close at 5,800.42.
The broader All Shares Price Index (DSI) also went down by 138.71 points or 2.77 per cent to close at 4,852.79. The DSE-20 Index comprising blue-chip shares plunged 81.60 points or 1.99 per cent to close at 4,006.84.
Market insiders said the investors are suffering from lack of confidence following the ongoing liquidity crunch in the market and are not taking active part in the trading.
"Fall of the indices continued to reflect the lack of confidence among the market participants," said a stock broker.
"Panic gripped the investors who sold the shares in speculation of further index fall. Investors were in sheer indecision as most of the proposals recently taken to spur the market activities are yet to be implemented," said LankaBangla Securities in its daily market commentary. In the wake of free fall of share prices, the aggrieved investors came out of different brokerage houses at about 1:30pm and staged demonstration and formed a human chain in front of the DSE protesting the share price fall.
The angry investors under the banner of 'Bangladesh Share Market Investors Unity Council' again demanded immediate resignation of Finance Minister AMA Muhith and Bangladesh Bank Governor Dr Atiur Rahman.
Traffic movement was suspended for about two hours as the police barred vehicles from using the street from the Shapla Chattar to the Ittefaq intersection.
They also sought immediate intervention of Prime Minister Sheikh Hasina to bring back normalcy and stablise the market.
They further vowed to continue their programme until the stability is restored in the capital market.
They also held a meeting with the Securities and Exchange Commission (SEC) where they placed a 15 points chanter of demands.
The SEC held several meetings with the stakeholders with a view to stablising the market.
It also announced last week that the central bank had agreed to give merchant banks more time to adjust their single-borrower exposures in a bid to help the drooping capital market.
Besides, the SEC agreed in principle to fix a minimum limit for sponsors to hold a certain percentage of shares outstanding.
The SEC also formally announced its decision Saturday to keep face value of each shares or unit at Tk 10 effective from December 4.
"But these attempts apparently failed to restore confidence among investors," said a market insider.
Even after several measures, retail investors are not considering the market suitable for investment, he added.
'I don't know whether the market will be stabilised or not but I have lost major portion of my investment,' said an investor.
Out of 259 issues traded, only 14 advanced, 242 declined and three remained unchanged.
However, total transaction amounted to Tk 3.96 billion which was 34.23 per cent higher than previous day's Tk 2.95 billion.
A total of 44.41 million shares changed hands on the day against 38.54 million in the previous session. The trade deals also increased to 92,747 against Thursday's 71,888.
Total market capitalisation of the DSE declined to Tk 2,787.79 billion against Tk 2,853.49 billion in the previous session.
All the sectors ended in red zone as selling pressure was witnessed all across the board with financial sector retraced more compared to the index.
Among the major sectors---banks lost 3.21 per cent, while NBFIs 3.29 per cent, telecommunications 3.30 per cent, pharma sector 1.03 per cent and fuel and power 2.48 per cent.
Delta Brac Housing gained 2.20 per cent and topped the turnover chart with share worth Tk 141.55 million changed hands following its declaration of 100 per cent stock dividend.
The other turnover leaders were Beximco Pharma, Titas Gas, Beximco Limited, National Bank, CMC Kamal, Lafarge Surma Cement, GP, Malek Spinning and ONE Bank.
AIBL First Mutual Fund was the day's top gainer posting a rise of 5.95 per cent.
It was followed by Pharma Aids, BD Autocars, Renwick Jajneswar & Co (Bd), Monno Stafflers, Delta Brac Housing, Desh Garment, ACI, Southeast Bank First Mutual Fund and BATBC.
The day's worst losers included MBL First Mutual Fund, Salvo Chemicals, Eastern Lubricants, Federal Insurance, Deshbandhu Sugar Mills, ICB Third NRB Mutual Fund, Janata Insurance and Sandhani Insurance.
Source: FE
The benchmark General Index of the Dhaka Stock Exchange, DGEN, shed 166.08 points or 2.78 per cent to close at 5,800.42.
The broader All Shares Price Index (DSI) also went down by 138.71 points or 2.77 per cent to close at 4,852.79. The DSE-20 Index comprising blue-chip shares plunged 81.60 points or 1.99 per cent to close at 4,006.84.
Market insiders said the investors are suffering from lack of confidence following the ongoing liquidity crunch in the market and are not taking active part in the trading.
"Fall of the indices continued to reflect the lack of confidence among the market participants," said a stock broker.
"Panic gripped the investors who sold the shares in speculation of further index fall. Investors were in sheer indecision as most of the proposals recently taken to spur the market activities are yet to be implemented," said LankaBangla Securities in its daily market commentary. In the wake of free fall of share prices, the aggrieved investors came out of different brokerage houses at about 1:30pm and staged demonstration and formed a human chain in front of the DSE protesting the share price fall.
The angry investors under the banner of 'Bangladesh Share Market Investors Unity Council' again demanded immediate resignation of Finance Minister AMA Muhith and Bangladesh Bank Governor Dr Atiur Rahman.
Traffic movement was suspended for about two hours as the police barred vehicles from using the street from the Shapla Chattar to the Ittefaq intersection.
They also sought immediate intervention of Prime Minister Sheikh Hasina to bring back normalcy and stablise the market.
They further vowed to continue their programme until the stability is restored in the capital market.
They also held a meeting with the Securities and Exchange Commission (SEC) where they placed a 15 points chanter of demands.
The SEC held several meetings with the stakeholders with a view to stablising the market.
It also announced last week that the central bank had agreed to give merchant banks more time to adjust their single-borrower exposures in a bid to help the drooping capital market.
Besides, the SEC agreed in principle to fix a minimum limit for sponsors to hold a certain percentage of shares outstanding.
The SEC also formally announced its decision Saturday to keep face value of each shares or unit at Tk 10 effective from December 4.
"But these attempts apparently failed to restore confidence among investors," said a market insider.
Even after several measures, retail investors are not considering the market suitable for investment, he added.
'I don't know whether the market will be stabilised or not but I have lost major portion of my investment,' said an investor.
Out of 259 issues traded, only 14 advanced, 242 declined and three remained unchanged.
However, total transaction amounted to Tk 3.96 billion which was 34.23 per cent higher than previous day's Tk 2.95 billion.
A total of 44.41 million shares changed hands on the day against 38.54 million in the previous session. The trade deals also increased to 92,747 against Thursday's 71,888.
Total market capitalisation of the DSE declined to Tk 2,787.79 billion against Tk 2,853.49 billion in the previous session.
All the sectors ended in red zone as selling pressure was witnessed all across the board with financial sector retraced more compared to the index.
Among the major sectors---banks lost 3.21 per cent, while NBFIs 3.29 per cent, telecommunications 3.30 per cent, pharma sector 1.03 per cent and fuel and power 2.48 per cent.
Delta Brac Housing gained 2.20 per cent and topped the turnover chart with share worth Tk 141.55 million changed hands following its declaration of 100 per cent stock dividend.
The other turnover leaders were Beximco Pharma, Titas Gas, Beximco Limited, National Bank, CMC Kamal, Lafarge Surma Cement, GP, Malek Spinning and ONE Bank.
AIBL First Mutual Fund was the day's top gainer posting a rise of 5.95 per cent.
It was followed by Pharma Aids, BD Autocars, Renwick Jajneswar & Co (Bd), Monno Stafflers, Delta Brac Housing, Desh Garment, ACI, Southeast Bank First Mutual Fund and BATBC.
The day's worst losers included MBL First Mutual Fund, Salvo Chemicals, Eastern Lubricants, Federal Insurance, Deshbandhu Sugar Mills, ICB Third NRB Mutual Fund, Janata Insurance and Sandhani Insurance.
Source: FE
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