DSE key index plunges to three-year low
Shares on Dhaka Stock Exchange fell during all the trading days last week, sending the key index to its three-year low of 4,810.21 points.
The DSEX, the benchmark index of the bourse, lost 127.61 points in the four days available for trading. The market was closed on Monday on the occasion of Durga Puja.
The fall in the last two weeks wiped off Tk 12,642 crore in investors’ share value despite a number of recent steps taken by the government to give a boost to the market.
Market insiders say the government steps have failed to boost investors’ confidence as the stock market regulator is yet to take any action against the manipulators of junk stocks.
Some junk stocks regularly featured in the list of top gainers every day during the weeks.
For instance, Zeal Bangla, Shyampur Sugar Mills, Maksons Spinning Mills, and Tung Hai Knitting were among the top gainers yesterday.
“Junk stocks rose in the last few days whereas the shares of well-performing companies moved in the opposite direction. Such a mismatch is not a good sign for the market,” a stock broker said.
He said analytical-minded investors suffer in the market. Now, they are reluctant to inject money until they see a strong initiative from the regulator aimed at punishing manipulators.
“Junk stocks rise only because of manipulation,” the broker added.
A merchant banker said when the market falls for a long period, it spooks investors’ confidence.
“In such cases, they don’t invest because they can’t understand where the lowest point of the fall is. The market is now in such a position.”
The DSE data showed that United Power Generation and Grameenphone were the top negative contributors to the index, shaving 14 points jointly off the prime index.
Turnover, however, rose 2.12 percent to Tk 327.81 crore.
National Tubes topped the turnover list with its shares worth Tk 24.13 crore being traded, followed by Bangladesh Shipping Corporation, Wata Chemicals, Atlas Bangladesh, and Silco Pharmaceuticals.
Of the traded issues, 59 advanced, 271 dropped, and 23 remained unchanged.
Chittagong stocks also fell, with the bourse’s benchmark index, the CSCX, declining 88.14 points, or 0.98 percent, to finish the day at 8,900.57.
Losers beat gainers as 183 securities declined, 34 advanced and 22 finished unchanged on Chittagong Stock Exchange.
The port city bourse traded shares and mutual fund units amounting to Tk 12.38 crore.
