Stocks back in red upon rumour
Dhaka stocks tumbled yesterday just after a spike on Sunday due to several rumours floating in the market.
DSEX, the benchmark index of the premier bourse, declined 59.55 points, or 1.11 percent, to close at 5,276.14 points. On Sunday, the index had gained 104.91 points.
A vested group is spreading a rumour that the market will not remain positive, so small investors have become frightened, according to industry insiders.
“Admittedly, the banks are suffering from a liquidity crunch, but even then such a slump is not justified,” said the managing director of a brokerage house.
In the last three months, the market shed more than 700 points, according to data from the DSE.
The Bangladesh Securities and Exchange Commission and the Bangladesh Bank have taken a host of steps to boost investor confidence, so it is expected that the index will bounce back, he said.
“But the market is displaying a very negative mood.”
On the other hand, the huge swings breed more fright among the general investors, he said, adding that the loss in confidence is one of the main reasons behind the market staying depressed.
Turnover, another important indicator of the market, fell 12.6 percent to Tk 387.73 crore, with 13.18 crore shares and mutual fund units changing hands on the DSE.
Of the traded issues, 50 advanced, 262 declined and 30 closed unchanged on the premier bourse.
Brac Bank dominated the turnover chart with its transaction of 68.77 lakh shares worth Tk 40.01 crore, followed by SK Trims, Fortune Shoes and Bank Asia.
Emerald Oil was the day’s best performer with its 10 percent gain, while Al-Arafah Islami Bank was the worst loser, shedding 9.25 percent.
Chittagong stocks also closed low with the bourse’s benchmark index, CSCX, declining 122.95 points, or 1.24 percent, to finish at 9,748.42. Losers beat gainers as 166 declined, 46 advanced and 27 finished unchanged on the Chittagong Stock Exchange.
