In the post-budget sessions on Monday, stocks extended their losing run for the fourth time, as investors’ attitudes remained negative across the board on macroeconomic concerns.
Following the proposed budget for FY 2022-23, the DSEX index plummeted 48 points in the first session on Sunday. The index is continuing to fall. The benchmark DSEX index traded in a 53-point range, hitting a high of 6,411 and a low of 6,657 during the day. It was down 30 points, or 0.47 per cent, at 6,361 at the closing. The Shariah-based DSES index slid 7.15 points, or 0.57 per cent, to 1,387, while the DS30 index, which includes blue-chip stocks, fell 16.06 points, or 0.69 per cent, to 2,300.
Concerns among investors centered on the hot foreign exchange market, the devaluation of the taka, the strain on current account balances, and the recent increase in call money rates. Investors believed that the developing liquidity problem in the banking system would have a negative influence on the bourses, according to EBL Securities in a note.
The government’s bank borrowing to cover the budget deficit is projected to deepen the financial system’s liquidity issue, according to the note. Furthermore, bourses saw a significant increase in participation, which was ascribed to sell-pressure, while turnover increased by 9.6 per cent to Tk870 Crore, up from Tk800 Crore the previous session. Pharma (12.7 per cent), Textile (12.7 per cent), General Insurance (11.3 per cent), Engineering (11 per cent), and Ceramic (10.1 per cent) stocks saw the greatest turnover on the sectoral front. The majority of sectors posted negative returns on Tuesday, with Travel (-1.8 per cent), Tannery (-1.5 per cent), Jute (-1.3 per cent), IT and Financial Institute (1.1 per cent), and paper (1 per cent), among them.
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