Dhaka, Ctg stocks bleed amid sell-offs

The key indices of the stock markets of Bangladesh witnessed a significant drop yesterday owing to massive sell-offs by general investors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), slid 30 points, or 0.48 percent, to close at 6,257.

The DS30, the blue-chip index, decreased 0.65 percent to 2,124 while the DSES, the Shariah-compliant index, went down 0.45 percent to 1,357.

Turnover, a key indicator of the market, edged down 2.82 percent to Tk 413 crore.

Top officials of several stock market intermediaries said investors are worried that political tension linked with the upcoming national elections may worsen. As a result, they were in a selling mood.

Another factor behind investors' worries has been the impasse created in the market by the floor price, said a broker, adding that if it continues, funds may remain stuck for a long time.

"Investors are concerned that if the floor price is lifted, it may cause the index to plummet."

The Bangladesh Securities and Exchange Commission set the floor price of every stock to halt their free fall amid global economic uncertainties brought on by the dragging coronavirus pandemic and the Russia-Ukraine war.

The floor price, the lowest price at which a share can be sold, was lifted for 169 companies in December before being reintroduced again in March this year as economic uncertainty deepened.

Of the securities that traded on the DSE yesterday, 19 advanced, 148 declined and 223 did not show any price movement.

Central Pharmaceuticals Ltd posted the highest gain with an increase of 2.6 percent.

Nitol Insurance, Navana CNG, Far Chemical Industries, and Janata Insurance were among the top gainers.

Khan Brothers PP Woven Bag Industries was the sharpest loser, shedding 8.7 percent.

Sea Pearl Beach Resort & Spa, Fu Wang Food, Shyampur Sugar Mills, Monno Agro & General Machinery were also on the list of significant losers.

Fu Wang Food was the most-traded stock on the day with its issues worth Tk 23 crore changing hands.

Sonali Paper & Board Mills, Gemini Sea Food, LafargeHolcim Bangladesh, and Square Pharmaceuticals registered significant turnover as well.