Stock market bleeds: DSEX falls 8 days straight, turnover at 4-month low

Infographics: TBS

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), extended its losing streak to eight consecutive sessions today (23 April) amid waning investor participation and a four-month low in turnover.

Today, the DSEX edged down 4 points to close at 5,022, while the blue-chip index DS30 snapped its losing streak, gaining 7 points to settle at 1,867.

Among the trading stocks, 119 advanced, while 214 declined and 62 remained unchanged.

The turnover stood at Tk300 crore, which was 12% lower than the previous session. The lowest turnover was Tk281 crore on 26 December last year.

Meanwhile, the Chittagong Stock Exchange (CSE) also closed in negative territory today. Its general index (CSCX) dropped 33 points to 8,550, while the all-share price index (CASPI) fell 69 points to 14,011.

Over the past eight consecutive sessions till Tuesday, the DSEX index has shed 183 points, deepening investor frustration amid a prolonged bearish trend. In response, general investors arranged a protest rally in front of the Bangladesh Bank at Motijheel on Wednesday, demanding the resignation of Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood.

However, the DSE Brokers Association of Bangladesh has urged brokerage firms to refrain from joining the general investors' rally, emphasising the need to maintain market discipline and safeguard a healthy investment environment for the greater good of the capital market and its investors.

Earlier, managing directors of the top 20 brokerage firms sat with the BSEC on Tuesday, seeking policy support to address the mounting negative equity in their margin and dealer accounts.

They expressed concern that the burden of negative equity has significantly limited their ability to participate actively in the secondary market.

In response, the BSEC chairman described negative equity as a "cancer" in the market. He noted that since the extent of the issue varies from firm to firm, each brokerage would be required to submit its specific negative equity status, based on which the commission will issue customised guidelines.

Meanwhile, the BSEC has granted the Investment Corporation of Bangladesh (ICB) an exemption from the standard 5% investment limit for shares of any single 'A' category listed company, allowing the state-owned investor to take larger stakes in top-tier firms.

The exemption, granted in response to an ICB request, aims to enhance market stability and enable increased investment in fundamentally sound and promising securities. BSEC expects the move to support liquidity and investor confidence in the capital market.

A managing director of a brokerage firm, requesting anonymity, told TBS that investors are staying away from the capital market primarily due to a lack of confidence stemming from ongoing instability at the BSEC, delayed reform outcomes, and prevailing economic uncertainties.

"There's no major trigger from either the regulator or the government that could help restore investor confidence — in fact, the situation seems to be deteriorating further," he added.

He also noted that offering policy support to ICB is unlikely to improve the market, as the institution has already become largely ineffective.