IMF loan fails to revive stocks, DSEX falls for third day
The $4.7 billion loan approval for Bangladesh by the International Monetary Fund (IMF) failed to energise stock investors on Tuesday.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), declined for the third straight session to close 0.18% lower at 6,267, compared to Monday's trade.
Meanwhile, Pakistan, which has been in a serious crisis with its depleted reserve and depreciating currency, saw its stock market recovering on Tuesday as soon as the IMF resumed its stalled talks with the country's government regarding loans.
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Analysts said unlike Pakistan, the IMF loan was not a crying need for Bangladesh. More importantly, the foreign currency loan set to come in tranches over years was already included in investors' forecasts. Also, apparently they were more focused on corporate earnings and the secondary market's short-term trends.
Corporate earnings of listed companies are unfolding the challenges which the businesses have been going through since the second quarter of 2022. Only a few sectors and smart firms managed to uphold their bottom lines.
The DSE daily turnover increased by 12.5% to Tk573 crore on Tuesday amid the downward pressure in stock prices and indices.
Only 31 scrips advanced at the DSE, while 135 declined. And, 313 of the 400 scrips had no spontaneous bidder during the closing bell.
232 scrips are still under floor price protection, and 168 are being allowed to fall by at best 1% a day.
