After Tuesday's spiky rise, Dhaka stocks fell sharply again Wednesday, as investors went for aggressive sell-off at late hour and DGEN dived again below the 6,000 points strong psychological support level.
The investors were selling-off shares of panic, as they were expecting a firm decision from the government high-ups and at the same time could not rely on the SEC's assurance, observed a market insider.
Meanwhile, a section of investors under the banner of Bangladesh Share Market Investors' Unity Council, a platform of small investors, staged demonstration and brought out procession in front the DSE building in line with their earlier announced programme.
The investors took to the streets in protest against the continuous market fall for the third consecutive day on the day.
They started to come out of different brokerage houses and gathered in front of the DSE building at about 1:30pm and demonstrated in protest against the ongoing share prices fall.
They also chanted slogan against Finance Minister AMA Muhith and Bangladesh Bank Governor Dr Atiur Rahman and demanded resignation of the two high-ups alleging that they had failed to take effective measures to stablise the market.
The demonstrators also sought immediate intervention of Prime Minister Sheikh Hasina to bring back normalcy in the stock market.
They also vowed to continue their programme until the stability is restored in the capital market.
The investors demonstrated until the closure of the market at 3pm. However, traffic movement in front of the DSE building was normal as additional police personnel were deployed in the spot.
The benchmark General Index of the Dhaka Stock Exchange, DGEN, plunged 94.43 points or 1.55 per cent to end the day at 5,960.73.
The broader All Shares Price Index (DSI) also went down by 79.30 points or 1.56 per cent to close at 4,987.66. The DSE-20 Index comprising blue-chip shares also shed 58.62 points or 1.41 per cent to close at 4,081.19.
Earlier, on Tuesday the Securities and Exchange Commission (SEC) took a series of initiatives including allowing merchant bankers to create new funds in an effort to overcome liquidity crisis.
The SEC also announced that the central bank had decided to allow 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.
"But these attempts apparently failed to restore confidence among investors, as the market witnessed choppy trading session at the opening hour before aggressive sell-off at the last three hours," said a stock broker.
"The efforts of SEC relating to stabilise the market fail to hold back the erosion of the market and the investors can not rely on the SEC's assurance," said Akter H Sannamat, a chartered accountant and capital market analyst.
"A concrete decision should be come from the government high-ups to restore investors' confidence," Mr Sannamat said.
Earlier on Tuesday, the market closed 134 points or 2.26 per cent higher following the news that the central bank extended deadline for adjusting single-borrower exposure limit for merchant banks.
The day's turnover value, however, improved slightly to Tk 3.79 billion against Tk 3.59 billion in the previous session.
A total of 56.35 million shares changed hands on the day against 46.97 million in the previous session. The trade deals also increased to 86,325 against Tuesday's 82,430.
Total market capitalisation of the DSE stood at Tk 2,852.91 billion against Tk 2,890.96 billion in the previous session.
Share prices of most of the issues traded on the day declined. Out of 257 issues traded, only 25 advanced, 225 declined and seven remained unchanged.
All the sectors ended in red zone. Among the major sectors, bank lost 1.57 per cent, while NBFIs, telecommunications, pharmaceuticals and fuel and power sectors ended 1.69 per cent, 1.70 per cent, 0.67 per cent and 1.52 per cent lower respectively.
Beximco Limited topped the turnover list with shares worth Tk 119.85 million changed hands.
The other turnover leaders were Malek Spinning, Jamuna Oil, GP, Titas Gas, Golden Son, Beximco Pharma, Lafarge Surma Cement, MI Cement and CMC Kamal.
Reliance Insurance was the top gainer posting a rise of 4.54 per cent on the day.
It was followed by EBL NRB Mutual Fund, Pharma Aid, Eastern Bank, Pragati Life Insurance, Southeast Bank First Mutual Fund, Samorita Hospital, Gemini Sea Food, BRACSCBOND and Rahim Textile.
They day's top losers included Modern Dyeing, Salvo Chemicals, Phoenix First Mutual Fund, Paramount Insurance, Metro Spinning, Meghna Cement, Dacca Dyeing, Square Textile, Prime Insurance and Phoenix Insurance.
The investors were selling-off shares of panic, as they were expecting a firm decision from the government high-ups and at the same time could not rely on the SEC's assurance, observed a market insider.
Meanwhile, a section of investors under the banner of Bangladesh Share Market Investors' Unity Council, a platform of small investors, staged demonstration and brought out procession in front the DSE building in line with their earlier announced programme.
The investors took to the streets in protest against the continuous market fall for the third consecutive day on the day.
They started to come out of different brokerage houses and gathered in front of the DSE building at about 1:30pm and demonstrated in protest against the ongoing share prices fall.
They also chanted slogan against Finance Minister AMA Muhith and Bangladesh Bank Governor Dr Atiur Rahman and demanded resignation of the two high-ups alleging that they had failed to take effective measures to stablise the market.
The demonstrators also sought immediate intervention of Prime Minister Sheikh Hasina to bring back normalcy in the stock market.
They also vowed to continue their programme until the stability is restored in the capital market.
The investors demonstrated until the closure of the market at 3pm. However, traffic movement in front of the DSE building was normal as additional police personnel were deployed in the spot.
The benchmark General Index of the Dhaka Stock Exchange, DGEN, plunged 94.43 points or 1.55 per cent to end the day at 5,960.73.
The broader All Shares Price Index (DSI) also went down by 79.30 points or 1.56 per cent to close at 4,987.66. The DSE-20 Index comprising blue-chip shares also shed 58.62 points or 1.41 per cent to close at 4,081.19.
Earlier, on Tuesday the Securities and Exchange Commission (SEC) took a series of initiatives including allowing merchant bankers to create new funds in an effort to overcome liquidity crisis.
The SEC also announced that the central bank had decided to allow 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.
"But these attempts apparently failed to restore confidence among investors, as the market witnessed choppy trading session at the opening hour before aggressive sell-off at the last three hours," said a stock broker.
"The efforts of SEC relating to stabilise the market fail to hold back the erosion of the market and the investors can not rely on the SEC's assurance," said Akter H Sannamat, a chartered accountant and capital market analyst.
"A concrete decision should be come from the government high-ups to restore investors' confidence," Mr Sannamat said.
Earlier on Tuesday, the market closed 134 points or 2.26 per cent higher following the news that the central bank extended deadline for adjusting single-borrower exposure limit for merchant banks.
The day's turnover value, however, improved slightly to Tk 3.79 billion against Tk 3.59 billion in the previous session.
A total of 56.35 million shares changed hands on the day against 46.97 million in the previous session. The trade deals also increased to 86,325 against Tuesday's 82,430.
Total market capitalisation of the DSE stood at Tk 2,852.91 billion against Tk 2,890.96 billion in the previous session.
Share prices of most of the issues traded on the day declined. Out of 257 issues traded, only 25 advanced, 225 declined and seven remained unchanged.
All the sectors ended in red zone. Among the major sectors, bank lost 1.57 per cent, while NBFIs, telecommunications, pharmaceuticals and fuel and power sectors ended 1.69 per cent, 1.70 per cent, 0.67 per cent and 1.52 per cent lower respectively.
Beximco Limited topped the turnover list with shares worth Tk 119.85 million changed hands.
The other turnover leaders were Malek Spinning, Jamuna Oil, GP, Titas Gas, Golden Son, Beximco Pharma, Lafarge Surma Cement, MI Cement and CMC Kamal.
Reliance Insurance was the top gainer posting a rise of 4.54 per cent on the day.
It was followed by EBL NRB Mutual Fund, Pharma Aid, Eastern Bank, Pragati Life Insurance, Southeast Bank First Mutual Fund, Samorita Hospital, Gemini Sea Food, BRACSCBOND and Rahim Textile.
They day's top losers included Modern Dyeing, Salvo Chemicals, Phoenix First Mutual Fund, Paramount Insurance, Metro Spinning, Meghna Cement, Dacca Dyeing, Square Textile, Prime Insurance and Phoenix Insurance.
Source: FE
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