DSEX slumps below 5,000-mark | 2019-07-23

DSEX slumps below 5,000-mark

Staff Correspondent

23 July, 2019 12:00 AM printer

The benchmark general index of the premier bourse, DSEX dropped 67.3 points and came down below 5000-mark on Monday after 33 months as investors mostly on selling spree, fearing further fall.

Following the previous day’s steep fall, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened on negative which continued till end of the session.

The losers took a strong lead over the gainers as 277 issues closed lower, 60 gained and 16 issues remained unchanged out of the 353 issues that traded on the DSE

The prolonged subdued trends puts most of the investors in a state of dilemma because they have been experiencing a fast deterioration in value of stocks they have invested in.  “The market lost its vibrancy, low share prices have not been attracting investors,” said a stock broker expressing his frustration.

The DSE turnover, however, was Tk 4.64 billion, which was 26 percent higher than the previous day’s turnover of Tk 3.68 billion as some of the investors are talking the opportunities to grab shares at low prices.

To overcome the crisis, the government and the Securities and Exchange Commission (SEC) have undertaken a number of initiatives in the recent past; some of these initiatives are in the process of implementation. But hardly these could have any positive impact on the market sentiment.

The stock investors lost over Tk 23,000 crore just in the last three weeks but the regulator is yet to take any action to stem the tide. The slide began when news emerged that fiscal 2019-20’s budget would be passed in the parliament on June 30 without any significant incentive for stocks and the market hardly rebounded since.

And yet, the Bangladesh Securities and Exchange Commission is not taking action to calm down the jittery retail investors and lift their confidence.

Its actions thus far have been to form a committee to find out the reason for the slump and ask institutional investors to bump up their investment.