Stocks fall sharply on political worries
Dhaka Stock Exchange yesterday saw its biggest single-day fall in over two and a half months fearing political uncertainty in the run-up to the national election, market insiders said.
BNP leaders on Saturday joined a rally of Jatiya Oikya Prokriya, a platform of some political parties led by Dr Kamal Hossain, and extended support to their three-point demand including formation of a polls-time neutral government.
DSEX, the benchmark general index of the DSE, dropped 51.80 points or 0.94 percent to close the day at 5,415.24.
Earlier on July 2 the index had shed 83 points.
“Investors fear political uncertainty ahead of the national polls could impact the stock market,” managing director of a stock broker said requesting not to be named.
This fear compelled investors to offload shares, he said.
The Daily Star talked to a number of investors in some brokerage houses yesterday to understand their pulse. Many of the investors predicted that the stable political environment prevailing for the last five years could be spoiled centring the national election.
Mostaque Ahmed Sadeque, president of the DSE Brokers' Association, said he heard investors were nervous to some extent and this might have forced them to sell shares.
He, however, said the market is almost at the bottom and there is hardly any scope for a big fall.
“Prices of many stocks are at their lowest levels and wise investors will go for buying those shares,” said Sadeque. “So, the index will bounce back soon.”
Turnover, another important indicator of the market, declined 10.13 percent to Tk 742.39 crore yesterday.
Khulna Power was the top traded stock with 56.96 lakh shares worth Tk 70.60 crore changing hands, followed by United Power, Ifad Autos, Active Fine and BBS Cables.
Shyampur Sugar was the day's best performer with 10 percent gain in its price, while Evince Textile was the biggest loser, shedding 30 percent riding on negative corporate declarations. Losers outnumbered gainers by 252 to 59, while 20 securities remained unchanged.
Chittagong Stock Exchange also witnessed a big fall as its key index plunged 112.01 points to end the day at 10,115.90.
