Nearly Tk1 lakh crore wiped out in market value since floor removal 

Infographics: TBS

The country's stock market has experienced a staggering loss of Tk99,518 crore in value over the past 43 sessions since the removal of floor price restrictions on 18 January.

In addition, the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), declined by 7% to 5,901 points as of the closing bell on Sunday – the lowest since 24 May 2021.

Many experts and analysts have described the fall as a typical correction following the withdrawal of floor price restrictions that began in January. However, the 435-point drop in less than seven weeks has already rattled them, especially those heavily exposed to stocks.

Analysts, adhering to the universal theory suggesting that the stock market tends to weaken when interest rates continue to rise, stated that large-cap stocks, particularly those stuck at their lower limits for one and a half years despite declining earnings, might have been under stress until there is a rebound in fund flow and corporate earnings.

The frequent occurrences of junk stock mega fests on the bourses, facilitated by the regulator's decision to keep most large and mid-cap stocks hibernating for extended periods, have pushed clean investors into a tight corner.

Stockbrokers, speaking anonymously, revealed that the market's collective psyche was abnormally affected by excessive manipulation, leading many short-term traders to lose money chasing them at the end of managed rallies. Clean investors, who prioritize adherence to investment principles, have consequently shied away."

DSEX loses 86 points in 3 hours on Sunday

The DSEX lost 86 points in the last three hours of Sunday as investors reverted to selling mode after a two-day break, reflecting wavering confidence across the trading floor.

According to EBL Securities' daily market commentary, the market initially extended its uptrend in the first hour of the session. However, subsequent choppy trading caused the core index to tumble, closing in the red territory again after a short-lived uptrend in the previous two sessions.

The persistent volatility in the market has prompted cautious investors to partially liquidate their holdings and remain on the sidelines until there is any clear indication regarding market momentum.

At the end of the Sunday session, the DSEX closed at 5,901 points, marking a 40-point decrease from the previous session.

Meanwhile, market turnover slightly decreased by 5% to Tk580 crore compared to Tk610 crore in the previous session.

Among traded stocks, 65 advanced, 304 declined, and 28 remained unchanged.

Large stocks such as Beacon Pharma, Robi, BRAC Bank, IFIC Bank, and GPH Ispat played a pivotal role in Sunday's downfall.

The port city bourse, the Chittagong Stock Exchange (CSE), also settled in the red terrain. The selected indices, CSCX and CASPI, fell by 37 and 64 points to settle at 10,130 and 16,872, respectively.