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The key index of the Dhaka Stock Exchange (DSE) nosedived more than 2.53 per cent yesterday due to pressure stemming from panic sales by general investors.
The DSEX fell 142 points to 5,504.78, the lowest in one and a half months.
“Maybe people have lost confidence although there is no reason for losing faith in the market,” said Sharif Anwar Hossain, president of the DSE Brokers Association.
“The market is falling as some investors sold off shares and others are following suit,” he said, adding that such copycat tendencies intensify market falls.
The market is not at that much of a high level that it could be prone to see any correction. This fall is a result of panic sales, he said.
The stock broker also said general investors were in panic, for which they sold shares.
“We tried to pacify them and asked not to sell shares but they are not paying heed to us,” he said.
Their apprehension is that if the market falls further, they will become more of a loser, the broker added.
Turnover, an important indicator of the stock market, rose 8.13 per cent to Tk 771 crore.
Mercantile Insurance Company topped the gainers’ list, rising 4.22 per cent followed by Prime Insurance Company, Intech, Beacon Pharmaceuticals, and Takaful Islami Insurance.
Beximco topped the turnover list with trade worth Tk 124 crore, followed by British American Tobacco Bangladesh, LankaBangla Finance, Robi Axiata, and Beximco Pharmaceuticals.
CAPM IBBL Islamic Mutual Fund shed the most, dropping 9.61 per cent, followed by Mir Akhter Hossain, Shinepukur Ceramics, Appollo Ispat Complex, and Beximco.
The shares of some large-cap companies declined in the last few days, so people’s money are now stuck, said a merchant banker.
“Most of them are sitting idle. Some are selling shares fearing further falls,” he said.
The stocks rose without any reason and they are falling now for the same, added the merchant banker.
The port city bourse also dropped. The CASPI, the general index of the Chittagong Stock Exchange, fell 414 points, or 2.53 per cent, to 15,916.
Of the stocks, 30 rose, 151 dropped and 43 remained the same.
(TDS)
