The Dhaka Stock Exchange (DSE) reacted negatively on April 25, to the regulator’s intervention aimed at halting the ongoing decline. The regulatory order limited the daily downward price change to 3%, down from up to 10%. As a result, 146 out of the around 400 scrips at the DSE had no bidder interested in buying at the 3% lower price. The DSEX, the broad-based index of the DSE, fell to a 36-month low of 5,479 before slightly recovering and closing 1.08% lower at 5,518. Stockbrokers said the fall restriction reminded investors of the floor price mechanism, which deprived them of selling opportunities. With many stocks suspended from trading, turnover in the DSE declined by 15% to Tk511 crore. While some opportunistic investors took positions in beaten-down small-cap stocks, the overall market outlook remained gloomy.
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