Stocks plunge on panic sales amid political strife
Stocks fell yesterday mainly due to panic sales as the ongoing political instability has dented investor confidence, with the main gauge of the market hitting a three-month low.
DSEX, the benchmark general index of Dhaka Stock Exchange, closed at 4,654.95 points, after falling 69.09 points or 1.46 percent. DSEX had stood at 4,675.91 points on November 9, 2014.
Turnover, the most important indicator of the market, was Tk 184.69 crore yesterday, the lowest in one month, falling 10.6 percent from Tk 206.57 crore the previous day.
The political stalemate that has been going on for the past 27 days has taken a toll on investor confidence, said Mohammed Rahmat Pasha, managing director of BRAC EPL Stock Brokerage.
The profitability of listed companies will be affected in the next quarter, as the supply chain has been disrupted in the face of relentless blockade and strike, Pasha said.
"Investors sharply retorted to the monetary policy statement with no addition to capital market incentives following the month-long political unrest," commented LankaBangla Securities.
The market saw another day of panic sales in the face of political turbulence, the stockbroker said.
The market largely shrugged off the promising earnings declared mainly by some fast-moving consumer goods makers and pharma companies as a bearish stance continued, it said.
In the wake of a 72-hour strike, the market faced another round of panic sales, IDLC Investments said.
Although the monetary policy statement hoped for higher economic growth on condition of political stability, it failed to ease stockmarket investors' fears as the business environment could be worst in the coming days, the investment banker said.
Among the major sectors, textiles took the biggest blow with a 2.59 percent fall in market cap, followed by engineering with 2.31 percent, information technology 2.13 percent and non-bank financial institutions 1.83 percent.
A total of 247 issues declined out of 308 issues traded on the DSE, while 41 advanced and 20 remained unchanged.
Lafarge Surma Cement was the turnover leader with 7.5 lakh shares worth Tk 9.93 crore changing hands.
AIBL First Islamic Mutual Fund was the highest gainer of the day with an 8.51 percent gain, while Modern Dyeing and Screen Printing was the worst loser, plunging 8.94 percent.
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