Stock market slips below 7,000 points after 11 days

The key index of the Dhaka Stock Exchange plunged yesterday after the central bank specified the instruments where non-bank financial institutions' investment would be considered while calculating their stock market exposure.

The DSEX, the benchmark index of the DSE, lost 52 points, or 0.74 per cent, to close at 6,991. This was the first time, the index has dropped below 7,000 points in 11 trading days.

The market fell as the investors realised that the central bank had limited the exposure for the NBFIs, said a stockbroker.

The central bank wants to restrict the NBFIs so that they can't make huge investments in the market. The market should rise on the basis of general investors' investment, he said.

On Tuesday, the Bangladesh Bank fixed the instruments that will be considered as a stock market investment for NBFIs. It was not specified earlier.

All listed shares, debenture, corporate bonds, mutual funds and other products at market prices shall be considered as a stock market investment for NBFIs, the central bank said in a circular.

At the same time, the outstanding balance of loans given by the NBFIs to their subsidiaries and associated companies directly or indirectly engaged in the capital market will be considered as the stock market investment.

The loans that NBFIs have given to other companies dealing with the stock market and the finance that was given to any stock investment-related fund will be considered as the stock market investment.

The NBFI sector lost 2.2 per cent on the DSE yesterday.

"But the investors don't need to panic as NBFIs will not have to bring down their exposure to a large extent," the stockbroker said.

On the DSE yesterday, 76 stocks advanced, 257 fell and 45 remained unchanged. Turnover dropped 17 per cent to Tk 1,004 crore.

Stocks of Beximco Ltd saw the highest transaction with its shares worth Tk 104 crore transacted. Orion Pharmaceuticals saw a turnover of Tk 64 crore, Bangladesh Shipping Corporation Tk 54 crore, Fortune Shoes Tk 21 crore and Yeakin Polymer Tk 19 crore.

GQ Ball Pen topped the gainers' list as it was up 9.85 per cent, followed by Eastern Cables, Stylecraft, Apex Foods, and JMI Syringes.

Central Pharmaceuticals shed the most, slipping 4.16 per cent. Singer Bangladesh, Sena Kalyan Insurance, Far Chemical Industries, and Fortune Shoes were also among the worst-performing stocks on the day.

The Chittagong Stock Exchange (CSE) also plunged yesterday. The Caspi, the main index of the bourse in the port city, dropped 174 points, or 0.84 per cent, to 20,459.

Of the securities, 60 were up, 219 were down and 37 did not see any price movement.