Dhaka stocks experience sharpest selloff this year
After witnessing a bullish trend for the past two months, the Dhaka Stock Exchange (DSE) faced its sharpest selloff this year. The DSE's broad-based index, DSEX, plunged by 40 points or 0.63% to 6,316.
This decline marks the largest drop for the major equity benchmark since 20 November of the previous year when it fell by 0.81%. The gains achieved over the course of the previous seven sessions were completely erased on Tuesday (6 June), causing significant distress among investors.
Market analysts attribute this sudden downturn to several factors. Stockbrokers have blamed the political and economic uncertainties looming ahead of the national election, scheduled to take place in six months.
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Additionally, cautiousness among investors has heightened due to macroeconomic factors.
Furthermore, market insiders argued that the proposed national budget has done little to address the challenges faced by the country's struggling capital market.
In recent weeks, the market had been experiencing a series of rallies and corrections, and this morning's session initially appeared to be following the same pattern. However, after 1pm, a wave of desperate sellers emerged, dragging the DSEX down.
By the end of the trading day, only 25 scrips managed to advance, while a staggering 157 declined.
The total turnover registered by the DSE stood at Tk1,086 crore, a decrease from Tk1,256 crore recorded during the previous session.
