DSE loses Tk14,000cr market cap in five sessions
During the last five consecutive trading sessions, the DSEX experienced a loss of 141 points, marking its lowest point in a month
The Dhaka Stock Exchange (DSE) witnessed a sharp fall in its key index yesterday, extending the losing streak for five consecutive sessions, resulting in a loss of Tk14,000 crore in market capitalisation.
The DSEX, the main index of the bourse, experienced a decline of 44 points, settling at 6,131 on the day.
During the last five consecutive trading sessions, the DSEX experienced a loss of 141 points, marking its lowest point in a month.
Market insiders attribute the recent bearish run on the Dhaka bourse to the significant decline in large-cap stocks, particularly the two largest stocks, Grameenphone and British American Tobacco Bangladesh. The withdrawal of the floor price for these stocks resulted in a substantial fall, exerting downward pressure on the key index of the Dhaka bourse.
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British American Tobacco, the second-largest stock, alone dragged over 50 points in the last two days after the removal of the floor price. Additionally, the largest stock, Grameenphone, also contributed to further erosion of the DSE index since its floor price was lifted.
Besides, the downgrading of 28 firms by the regulator to the Z category in recent times also impacted the decline in the key index.
According to the DSE, after the floor price removal, BAT Bangladesh lost Tk4,200 crore in market capitalisation to stand at Tk23,800 crore at the end of the Tuesday trading session.
The multinational cigarette producer's share price witnessed an 8.13% decline to close at Tk440.80, down from Tk479.80 in the previous session.
Besides, over the last three sessions, its market capitalisation decreased by Tk4,590 crore, settling at Tk34,108 crore. GP's share price declined by over 1.79% to close at Tk252.60 yesterday.
EBL Securities in its daily market commentary said the Dhaka bourse experienced a significant plunge due to a substantial sell-off prompted by shaky investors' confidence, while rumours surrounding the potential withdrawal of floor prices for selective large-cap stocks deepened uncertainty on the trading floor.
Currently, Beximco Limited, BSRM Limited, Islami Bank Bangladesh, Khulna Power, Meghna Petroleum, and Shahjibazar Power are being traded at the floor price.
Meanwhile, DSE's daily turnover rose 6% to stand at Tk843 crore compared to the previous session. Out of the 397 issues traded, 102 advanced, 232 declined and 63 remained unchanged.
The port city bourse, Chittagong Stock Exchange, also settled on red terrain yesterday. The selected indices CSCX fell by 81 points to settle at 10,559 and the all-share Price Index CASPI plunged by 144 points to close at 17,595.
The turnover of the Chittagong bourse fell by 22% to stand at Tk13 crore.
