Stocks drop amid market volatility 

The market opened higher today, but the early gains faded away as selling pressure dragged down the benchmark index of the country's premier bourse.

The Dhaka Stock Exchange's (DSE) key index, DSEX, initially climbed over 50 points within the first 30 minutes. However, it later experienced a sharp decline, plummeting over 90 points in the final four hours of the session. Eventually, the index closed 31 points down at 5,278.

Earlier on Monday, the DSEX turned around, breaking a nine-day losing streak, buoyed by hopes that the government will form a coordinating committee to develop the capital market.

EBL Securities said in its daily market review, the benchmark index of the capital bourse failed to continue its positive momentum as investors preferred to sell off their current holdings owing to shaky confidence looming around the national budget declaration.

On Sunday, a meeting was held with the prime minister at her office, attended by Salman F Rahman, advisor on private sector and investment to the prime minister, State Minister for Commerce Ahasanul Islam, State Minister for Finance Waseqa Ayesha Khan, Bangladesh Investment Development Authority Chairman Lokman Hossain Miah, DSE Director Richard D'Rozario, CSE Chairman Asif Ibrahim, and other business leaders.

A participant at the meeting told The Business Standard, "We are requesting the Prime Minister to form a coordinating committee to develop the capital market. The committee will work on listing multinational and government companies and forming supporting rules and regulations to strengthen the market."

"The committee may be formed with representatives from the finance ministry, commerce ministry, National Board of Revenue, Bangladesh Bank, Bangladesh Securities and Exchange Commission, DSE, CSE, and DSE Brokers Association," he said.

He said the prime minister took note of their demands and assured them that she would give directions to the relevant authorities.

Earlier, in nine days till Sunday, the market capitalization at the DSE plunged by Tk63,646 crore as the broad index continued to decline following each session. Over the sessions, the DSEX lost a total of 446 points.

In the last nine days, the number of beneficiary owner (BO) accounts with share balances dropped by around 6,000, while the number of BO accounts with zero share balances rose by around 7,500.

Today, IFIC Bank led the turnover chart with Tk21.39 crore shares changing hands, as its vice chairman announced the intention to purchase 3.85 crore shares at the current market price.