Written by The Banking Post
The Dhaka stock market slipped to a one-month low on Sunday as cautious investors continued to offload shares amid rising political tension and lingering uncertainty in the financial sector.
Market sentiment had already been weak following the merger of five banks and the decision to liquidate nine non-bank financial institutions. Fresh political unrest, triggered by the death of Sharif Osman Hadi, a youth leader of the July uprising, further shook investor confidence.
“Uncertainty has left investors jittery, with many fearing the situation could worsen and hurt an already struggling market,” said Md Sajedul Islam, a newly elected director of the Dhaka Stock Exchange.
He added that the gloomy mood has been compounded by a shortage of investable securities. No company has entered the market through an initial public offering in the past 18 months—an unusual lull that has kept institutional and foreign investors on the sidelines amid weak corporate earnings.
The market opened sharply lower, with the benchmark index dropping 42 points within the first 20 minutes. Buying interest in beaten-down stocks emerged in the final hour, trimming losses slightly.
The DSE’s prime index closed at 4,826, down 5 points or 0.10 per cent, its lowest level since November 17. Over the past month, market capitalisation has fallen by Tk 72 billion, reflecting sustained selling pressure as investors try to protect strained portfolios.
Most blue-chip stocks also corrected during the period. Except for Eastern Bank and Prime Bank, leading shares posted losses ranging from 2 per cent to 15 per cent.
The DS30 index slipped 6 points to 1,853, while the DSES index shed 2 points to end at 999. Turnover remained subdued at Tk 2.93 billion, down from Tk 3.03 billion in the previous session.
Despite the weak close, gainers slightly outnumbered losers. Of the 388 traded issues, 161 advanced, 157 declined and 70 remained unchanged.
Rahima Food Industries topped the turnover chart, with shares worth Tk 126 million traded after the company announced a contract with City Group to produce City Edible Oil.
The Chattogram Stock Exchange also ended lower, with the CASPI falling 63 points to 13,561 and the CSCX losing 38 points to close at 8,365.
