DSE key index plunges to 10-month low

Shares on the Dhaka Stock Exchange suffered another massive fall yesterday sending the key index to a 10-month low as investors are increasingly growing edgy about the economy's worsening health. 

Yesterday was the sixth consecutive day the DSEX, the benchmark index of the premier bourse of the country, declined owing to the sinking investors' confidence because of multiple factors.

The stock market is often a sentiment indicator and there is nothing for investors from home and abroad that could convince them to keep their faith in the exchange. 

The Russian war in Ukraine is raging and the disruption in the global supply chain is unchanged and even deteriorating. Inflationary pressures are deepening.

At home, the US dollar supply is drying up owing to the rocketing imports needed to feed the economy rebounding from the pandemic against moderate exports and remittance receipts.

As a result, foreign currency reserves are falling although they can still provide cover for about five months of import payments. And the rising prices of essentials are hurting households' budget. 

Amid the gloomy scenario, the DSEX tumbled 93.58 points, or 1.46 per cent, yesterday to end the day at 6,309, the lowest since July 15. In the last six days, the index plunged by 388 points.

Turnover fell slightly to Tk 762 crore compared to Tk 779 crore on the previous day. Losers outnumbered gainers 42 to 310, with 29 securities remained unchanged.

The blue-chip DS30 index and the Shariah-based DSES index lost 1.15 per cent and 1.23 per cent, respectively.

"The jittery investors went for a heavy sell-offs to avoid further erosion of their portfolios," said International Leasing Securities Ltd in its daily market review.

All the sectors witnessed price correction: the travel and leisure sector lost 4.4 per cent, the ceramic sector gave up 3.9 per cent, and the services and real estate sector slipped 3.8 per cent.

The investors' activity was mostly concentrated on bank, pharmaceuticals and chemical stocks.

S Alam Cold Rolled Still Mills topped the gainers' list after rising 9.48 per cent. Bangas Ltd, Bangladesh Industrial Finance, BD Thai Food & Beverage, and Beach Hatchery rose between 5 to 8 per cent.

JMI Hospital Requisite Manufacturing, ACI Formulations, Delta Life Insurance, ADN Telecom, Shinepukur Ceramics, IPDC Finance, Genex Infosys, and Nahee Aluminum Composite Panel were the worst-performing stocks, each dropping nearly 5 per cent, the maximum amount the market regulator allows a stock to slip on a single day.

Beximco Ltd was the most-traded stock with its shares worth Tk 53 crore changing hands. Islami Bank, Shinepukur Ceramics, JMI Hospital Requisite Manufacturing and Salvo Chemical also saw heaving trading. 

The Chittagong Stock Exchange fell as well. The CASPI, the main index of the bourse in the port city, lost 211 points, or 1.12 per cent, to close the day at 18,533.

Of the 294 securities transacted, 43 advanced, 230 declined, and 21 did not see any price movement.