On January 24, 2024, DSEX, the key index of the Dhaka Stock Exchange, experienced a significant decline of 49.6 points, settling at a two-month low of 6,227 points, following the withdrawal of floor prices for large-cap shares after 1.5 years. Market turnover slightly decreased by 0.3% to Tk 1,173 crore.
The removal of floor prices led to selling pressures, with investors opting for profit booking and holding onto cash, anticipating better investment opportunities after recent market corrections. Out of 393 issues traded, 60 advanced, 301 declined, and 32 remained unchanged. The fuel and power sector faced the highest loss of 4.82%.
The move to lift floor prices, initiated by the Bangladesh Securities and Exchange Commission, aimed to address prolonged price stagnation, leading to a lack of price discovery and a subsequent liquidity crisis. Market participants expect a temporary correction, expressing confidence in the market’s eventual recovery.
