DSEX sinks to three-month low, drops 75 points as panic grips investors
The key benchmark index of the Dhaka Stock Exchange (DSE), DSEX, plunged by 75 points or 1.47% to settle at 5,044, its lowest level since July 9 when it had dipped to 5,034 points.
Dhaka stocks suffered another major sell-off today (19 October) as investor confidence continued to crumble amid persistent political uncertainty, financial sector instability, and panic-driven rumors in the capital market.
The key benchmark index of the Dhaka Stock Exchange (DSE), DSEX, plunged by 75 points or 1.47% to settle at 5,044, its lowest level since July 9 when it had dipped to 5,034 points.
The day's sharp fall wiped out around Tk12,300 crore in market capitalisation, dragging the DSE's total market value down to Tk6.86 lakh crore. Turnover also slumped to Tk442 crore, one of the lowest in recent weeks, reflecting a deepening liquidity crunch.
The blue-chip index DS30 dropped 30 points to 1,938, while the Shariah index DSES lost 24 points to 1,062.
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Out of 396 issues traded, 314 declined, 44 advanced, and 38 remained unchanged, signalling a broad-based sell-off across sectors.
Market insiders said a wave of panic selling swept through the bourse after rumors spread about upcoming changes in margin loan regulations.
According to market sources, a group of unscrupulous individuals and brokerage houses have been circulating false information suggesting that the revised margin loan rules are not favorable for investors.
These rumors, coupled with mounting uncertainty surrounding several merger-bound banks, the planned liquidation of non-bank financial institutions (NBFIs), and disappointing quarterly earnings from many companies, have further shaken market sentiment.
In its daily market commentary, EBL Securities noted that the DSE's benchmark index resumed its bearish momentum as "back-to-back political and trade uncertainties prompted jittery investors to trigger a broad-based sell-off on the trading floor."
The report added that the market "continued to bleed from the onset of the trading session as lingering political uncertainty and recent trade-disrupting incidents further eroded investor confidence."
However, EBL Securities also pointed out that the government is reportedly considering liquidity support for the capital market through the Investment Corporation of Bangladesh (ICB). If implemented, such measures could help cushion the ongoing market decline and restore some level of investor confidence.
Sector-wise performance painted a grim picture, as nearly all major sectors ended in the red.
The general insurance sector, which accounted for 14% of total turnover, was among the most active but also one of the hardest hit, losing 4.4% during the session.
The engineering sector followed with an 11% share of turnover, while pharmaceuticals accounted for 10.9%.
The services sector emerged as the worst performer, sliding 5.3%, followed by jute with a 4.5% drop.
Among individual stocks, Islami Bank, BRAC Bank, Beximco Pharma, Walton, and Khan Brothers PP Woven Bag were the major draggers on the index, collectively contributing a significant portion of the day's loss.
On the other hand, some small-cap and financially distressed firms managed to buck the trend and end higher.
Peoples Leasing and Financial Services gained 10%, National Housing Finance rose 9.85%, BSRM Steel advanced 8.69%, Acme Pesticides added 7.63%, and Bangladesh Industrial Finance Company (BIFC) climbed 7.4%.
Among the worst performers were Monno Agro, which slumped 14.24%, Khan Brothers PP Woven Bag down 9.94%, Pragati Insurance 9.6%, HR Textile 9.5%, and New Line Clothings 9.3%.
At the port city bourse, Chittagong Stock Exchange (CSE), the bearish sentiment was equally evident. The Selective Categories Index (CSCX) fell 113.6 points, while the All Share Price Index (CASPI) dropped 195 points, mirroring the downtrend at the DSE.
