DSEX hits one-month low as selloff continues

Dhaka stocks extended their fall to the second straight session on Tuesday amid a fear of further selloff ahead of the month-end.

DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), fell by 0.17% to close at 6,193.08.

The major equity index closed below the psychological threshold of 6,200 for the first time in a month.

Stockbrokers said, institutional investors were preparing to close their quarterly accounts on 31 March and most of them were trying to book some profits or realise losses eying some cash in hand.

As the buyers were acting conservative due to the weaker market sentiment, the result was negative for the market and the indices were spiralling down within a narrow range, they added.

Nowadays investors, regardless of being individuals or institutions, fear that most of their funds may get stuck in any stock due to floor prices which fuelled a behaviour of preferring quick profit booking.

A total of 301 of the 399 shares, mutual funds and corporate bonds had no buyer at floor prices during the closing bell on Tuesday, up from 296 a week ago.

Only 98 scrips were in regular trading above the floor prices where buyers and sellers actively traded.

At the end, only 28 scrips advanced and 56 declined.

Meanwhile, turnover in the premier bourse fell to Tk272 crore on Tuesday which was above Tk317 crore on the previous day.