Falling top two stocks extends decline in DSEX
BAT Bangladesh alone dragged 24 points while Grameenphone contributed with 7 points decline
The benchmark index at the premier bourse extended decline on Monday as the top two stocks lost their market value after withdrawal of the floor price.
The DSEX shed 40 points to settle 6,175 at the Dhaka Stock Exchange, where British American Tobacco (BAT) Bangladesh, the second largest stock, alone dragged 24 points.
The largest stock Grameenphone also dragged 7 points today.
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Besides, the downgrading of six firms by the regulator to the Z category also impacted the decline in the key index.
After the floor price removal, BAT Bangladesh lost Tk2,100 crore in market capitalisation to stand at Tk25,909 crore on the first trading day at the DSE on Monday.
The multinational company's share price witnessed a 7.5% decline to close at Tk479.8, down from Tk518.7 in the previous session.
Grameenphone saw a decline for two consecutive sessions after the removal of the floor price.
Over the last two sessions, its market capitalisation decreased by Tk3,970 crore, settling at Tk34,729 crore. GP's share price declined by over 1.69% to close at Tk257.20 today.
DSE's daily turnover dropped 19% to stand at Tk793 crore compared to the previous session. Out of the 395 issues traded, 112 advanced, 211 declined and 72 remained unchanged.
"The Dhaka stock market's benchmark index has extended its decline as risk-averse investors continue to sell off their holdings to avoid losses amidst ongoing market volatility," EBL Securities said in its daily market commentary.
The market uncertainty was compounded by a sudden regulatory decision to reclassify six stocks into the Z category, further eroding investor confidence, it added.
Pharma sector stocks contributed the highest 16.5% to the day's turnover, followed by textile with 13.5% and engineering with 13.1% contribution.
Most of the sectors displayed dismal returns, out of which food saw the highest 4.2% correction, while life insurance saw 2.2% and textile 1.4% correction.
IT sector showed the most positive returns of 2%, followed by travel 1.8% and Bank 0.6%.
The port city bourse CSE also finished in the red. Selected indices CSCX and All Share Price Index CASPI declined by 51.4 points and 100.9 points respectively.
