Stocks in free fall
Dhaka stocks continued its losing streak, as it lost a total of 302.95 points in three weeks amid persistent liquidity crunch and confidence crisis among investors.
The DSEX, the benchmark index of the premier bourse, lost 79.12 points last week, while it plunged 82.76 points and 141.07 points respectively in the previous two weeks.
Market insiders say investors are skittish about making fresh investment as the gambling on some stocks is going on every day.
Foreign investors are also reducing their stake for fear of currency appreciation in the coming months and an ongoing tussle between the telecom regulator and Bangladesh’s largest listed company Grameenphone over an audit claim.
The Bangladesh Telecommunication Regulatory Commission has served a show-cause notice to GP, asking why its licence would not be cancelled for not paying dues amounting to Tk 12,579.95 crore.
As most of the investors of GP are foreign and institutional ones, their sell-offs pulled down the market.
Banks and financial institutions have already been suffering from liquidity crunch for the last few months which dried up their investment.
“The investors are in a very tough situation as they are witnessing continuous erosion of their money,” a stock broker said.
He said people have become panicked because of the continuous fall.
“Now, some steps are needed on the part of the regulator to lift investors’ confidence -- it could be exemplary punishment of gamblers or easing of banks’ liquidity.”
Masum Ahmad, an investor, said he has been losing money for the last few weeks and is now facing forced sale pressure from his broker as the prices of his stocks declined hugely.
“I am perplexed,” he told The Daily Star.
He added that the DSE filed a general diary with Motijheel Police Station to prevent investors from protesting.
Average daily turnover, another important indicator of the market, however, rose 6.8 percent to Tk 421.54 crore.
Of the traded issues, 60 advanced, 281 declined and 14 closed unchanged.
Among the major sectors, fuel and power dropped 8.45 percent and general insurance 4.67 percent. Only the telecom sector ended the week in positive territory.
National Tubes was the most traded share with an average daily turnover of Tk 25.43 crore. The tube producer topped the gainers’ list, posting a 19.2 percent return.
Global Insurance gave up 18.53 percent in the week.
