The stock market had a greater and deeper drop on Monday as a result of too many unfavorable factors weighing on investors’ minds. While wrapping off Monday’s gloomy show, desperate sell-offs across the board brought the DSEX, the Dhaka Stock Exchange’s broad-based index, 2 per cent lower to 6,430 points, the lowest since August 2, 2021.
Investor confidence has been weak, according to stockbrokers, since the DSEX began to fall on May 10th. The revelation over the weekend that the de-facto market maker Investment Corporation of Bangladesh (ICB) may have to sell stocks in order to raise Tk700 crore in cash to lower its borrowing exposure with Sonali Bank and a few other lenders has exacerbated the situation.
In the end, the government’s cautious actions to protect diminishing foreign reserves have increased investor anxiety on the stock exchange, according to the comments.
Because of the gloomy global macroeconomic prognosis, as well as the uncertain and worsening local outlook due to deteriorating exchange rates, inflation pressure, inflation rate hike risk, and the existing danger to corporate profitability, equity analysts are considerably more cautious these days.
The market began the day with a dramatic sell-off, which lasted until the end of the session. The DSE’s market capitalization plunged below Tk5.22 trillion, wiping out about Tk9,200 crore. Only 26 stocks on the New York Stock Exchange survived the hurricane, while 348 fell and seven remained constant.
Due to the exit rush, the DSE’s daily turnover jumped by 24.4 per cent to Tk1,024 crore on Monday, with the pharmaceutical, banking, and food sectors each contributing more than 10 per cent to the total turnover. No sector witnessed an increase in market capitalization, while paper, services, and travel each saw their market capitalizations drop by over 4 per cent. The entire current price of all the shares of a company or industry is known as market capitalization. The Chittagong Stock Exchange was likewise dominated by sellers, with trade rising to almost Tk43 crore from less than Tk30 crore the previous session.
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