DSE bleeds as panic selling drags stocks to four-month low
According to DSE data, 275 issues declined, while 70 advanced and 41 remained unchanged, reflecting the market’s widespread bearish sentiment
The Dhaka Stock Exchange (DSE) witnessed yet another sharp fall yesterday, marking the seventh consecutive day of decline, as panic-driven investors continued to dump shares amid deepening market pessimism.
The benchmark index, DSEX, plunged 39 points to close at 4,860, which is lowest since 30 June. During the past seven sessions, the index has lost a total of 262 points, eroding about Tk16,000 crore in market capitalisation.
According to DSE data, 275 issues declined, while 70 advanced and 41 remained unchanged, reflecting the market's widespread bearish sentiment.
Turnover also fell by 11% to Tk356 crore, while the DSE's total market capitalisation dropped to Tk6.83 lakh crore, its lowest since early July.
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Market insiders said the selloff intensified as investors scrambled to adjust their portfolios after the introduction of new margin-loan rules that rendered a large number of stocks non-marginable. The regulatory changes forced brokerage houses to liquidate positions to meet the updated requirements, triggering a wave of forced selling across the bourse.
"The regulator did not provide any grace period for brokers and clients to adjust their existing margin loans," said the managing director of a leading brokerage firm, requesting anonymity. "As a result, many brokerage firms have started forced selling to avoid paying penalties or facing compliance issues. This is one of the main reasons behind the market's recent downturn."
He added that the overall economic uncertainty and the lack of positive news about the upcoming national election have further weakened investor confidence. "People are not seeing any short-term recovery in the economy or politics. That's why they are staying on the sidelines or liquidating their holdings," he said.
Despite a brief spell of early optimism, the market failed to sustain gains as broad-based selling pressure dominated throughout the session. The blue-chip index DS30 dropped by 18 points to settle at 1,910, while the Shariah-based DSES index also declined moderately.
Among the day's top gainers, Power Grid Company of Bangladesh led with a 13.21% jump, followed by Samata Leather (8.60%), Runner Auto (8.14%), Sonali Aansh (4.94%), and Malek Spinning (4.63%).
On the other hand, FAS Finance slumped by 9.87%, RSRM Steel by 9.80%, CAN Textile by 9.52%, Exim Bank First Mutual Fund by 9.37%, and Fareast Finance by 9.21%, becoming the day's worst losers.
Meanwhile, the Chittagong Stock Exchange (CSE) also ended in the red, as its CSCX index fell by 74 points to 8,504, and the CASPI index dropped by 140 points to 13,743.
