The market opened sharply lower on Thursday as the jittery investors continued to sell-off their holdings amid growing concerns over the economic situation.
Following the previous six day’s major fall, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 86.84 points or 1.36 per cent to stand at 6,223, after the first hour of trading at 11:00am.
Two other indices also saw major setbacks till then with the DS30 index, comprising blue chips, losing 34.30 points to reach 2,302 and the Shariah Index (DSES) fell 17 points to stand at 1,374.
Turnover, another important indicator of the market, amounted to Tk 1.87 billion after the first hour of trading at 11:00am.
The stock market remained unstable due to rising inflation which reduced the investors’ buying power to some extent and the depreciation of the local currency fueling foreign investors’ sales, said a merchant banker, wishing not to be named.
“The investors are in a very tough situation as they are witnessing continuous erosion of their portfolios,” he said.
The record surge in trade deficit in the wake of global price instabilities has become a concern among investors as it shortened dollar supply and depreciated the local currency, he said.
Of the issues traded till then, 296 advanced, 39 declined, and 33 issues remained unchanged on the DSE trading floor till then.
Beximco was the most traded stock till then with shares worth Tk 115 million changing hands, closely followed by Shinepukur Ceramics, JMI Hospital Requisite Manufacturing, RD Food and NRBC Bank.
The Chittagong Stock Exchange also saw a sharp fall till then with its All Shares Price Index (CASPI)—losing 174 points to stand at 18,400 the Selective Categories Index – CSCX shed 104 points to reach 11,042 at 11:00am.
Of the issues traded till then 125 advanced, 21 declined, and 16 remained unchanged with Tk 128 million in turnover.