Another down day in stock market
On Tuesday, the key index DSEX of the Dhaka Stock Exchange (DSE) slipped 76 points to close at 7.020. But in the first two trading hour, DSEX surged over 70 points after than the panic sale started
After six consecutive days of fall, the stock market on Tuesday opened higher with an anticipation for the much needed return of the buyers.
Over the first half of the session the market had almost recovered what it lost in the previous session, but aggressive sellers dragged it further down again.
DSEX, the broad-based benchmark of the Dhaka Stock Exchange (DSE), ended the day with 1.08% loss to close at 7,020.
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The index was above 7,400 points even eight days ago, and the sharp fall is spreading panic among investors.
"We forgot to ask why the market is falling so sharply, our capital is eroding everyday," Mohammad Mostafa, a retail investor, was saying on a trading floor at Motijheel.
He did not book any profit recently and now regrets it.
DSE indices and market capitalization dipped to one and a half months low on Tuesday.
Over the first half of the Tuesday session, life and general insurance stocks were the first choice of buyers as the regulators are pushing insurance entrepreneurs to hold at least 60% of their company stocks collectively and that leaves a speculation that many insurance entrepreneurs may need to buy shares from the market.
However, when the market drastically returned to the selloff mood, the majority of insurance stocks suffered a pullback to nearly where they started the day from.
For other stocks the day was for losing price.
Only 87 stocks in the DSE advanced at the end, while 254 declined and the price of 35 scrips remained unchanged.
Meanwhile, The Bangladesh Securities and Exchange Commission (BSEC) has had a meeting with the top stockbrokers and stock dealers after the trading hours.
Sources said they discussed the market situation nowadays and also the possible ways for market support.
The regulator asked intermediary firms to issue bonds so that they can invest in the market. BSEC also assured them of quick approval if they are financially sound issuers.
BSEC also said that it is working to utilise market stabilization funds for market support and also would talk to banks so that they build and use their Tk200 crore special fund for capital market investment, according to sources.
Profit booking after a long rally is the main reason behind the ongoing free fall, concluded the meeting.
