DSE turnover sinks to one-year low

Liquidity crisis blamed for panic sale

Staff Correspondent

11 April, 2019 12:00 AM printer

Turnover at the Dhaka Stock Exchange (DSE) yesterday sank to its year low at Tk 2724.395 million (272.43 crore) as investors were reluctant to make fresh investments amid shaky confidence.

Stocks continued to suffer massively on Wednesday for the fourth consecutive day, with prime index of Dhaka Stock Exchange (DSE) dipping to more than four and half months low, as worried investors sold shares fearing further fall.

In line with the previous session, the market began to fall from the very beginning yesterday and the downward trend continued until end of the session with no sign of reversal. At the end of the session, DSEX, the benchmark index of the prime bourse, went down by 57.145 points or 1.07 per cent to settle at more than four and half months low at 5,261.60.

The two other indices—the DS30 index and the DSE Shariah Index (DSES) – also ended lower. The DS30 index, comprising blue chips, fell 22.61 points to finish at 1,877 and the DSE Shariah Index lost 15.13 points to close at 1,217. The index lost about 420 points in last one month.

Market insiders said most of the institutional investors are suffering from liquidity crunch so they can’t invest in the market. On the other hand, recent market fall have created a fright of further fall so general investors are also losing confidence to invest.

Market analysts said many institutional investors were inactive and adopted the wait-and-see approach as index was not gained as per their expectation after the national polls.

Meanwhile, small stock investors yesterday staged demonstration for the third consecutive day protesting the free fall of share prices as well as continuous fall of the key indices at Dhaka and Chittagong Stock Exchanges.  

Investors said lower performance from listed companies and lower monitoring from the stock market regulator has intensified the recent fall. So they urged resignation of the chairman from the Bangladesh Securities and Exchange Commission.

The market has been falling for eleven consecutive weeks, dipping the key index by 688 points that wiped out Tk 22,294 crore in market capitalisation. The scenario spurred nervous sell-offs, market operators said.

After gaining 732 points in a month after the December 30 general election, the market suddenly started falling due mainly to a liquidity crisis in the financial sector that resulted in a rise in the interest rate. Some other issues fuelled the capital market volatility.