Stocks dip to one-month low amid US visa restriction woes
Issues like slower remittance inflow and resurging political uncertainties following the US visa restriction on undisclosed Bangladeshi individuals caused stock investors unnerved after a decent recovery of the indices over the last month.
Dhaka stocks tumbled on Sunday as investors went for heavy sell-offs right from the opening owing to the uncertain market momentum stemming from various macroeconomic and political concerns, notably the restrictions on US visas of Bangladeshi individuals.
DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 0.46% or 28.8 points to close at 6,281, the lowest since 24 August.
Issues like slower remittance inflow and resurging political uncertainties following the US visa restriction on undisclosed Bangladeshi individuals caused stock investors unnerved after a decent recovery of the indices over the last month.
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"Sellers dominated the market as cautious investors engaged in profit booking in the hyped-up insurance stocks, along with the other sector-specific issues, as they anticipated a probable shift in market momentum," EBL Securities wrote in its daily market commentary.
The market kept wading through choppy trading while sell pressure continued to mount from mid-session, causing the majority of scrips to end on negative terrain, it added.
Meanwhile, the Dhaka bourse observed a decrease in participation as total turnover fell by 31.9% to Tk500 crore.
On the sectoral front, general insurance made up one-third of the day's turnover, followed by food and allied and IT sectors which contributed to 8-11% of the DSE turnover.
No sector managed to gain on Sunday while travel, general insurance, paper and IT led the losers with 3.2% to 1.7% declines in their respective market capitalisation.
Trading on Sunday was a clear display of panic as only 12 scrips on the Dhaka bourse managed to gain while 148 declined.
DS30, the blue-chip index of the Dhaka bourse, closed 0.43% lower at 2,136.
Union Insurance, Paramount Insurance, Karnaphuli Insurance, and BDcom were the top five gainers while Sea Pearl Beach Resort, Unique Hotel, Fuwang Food, Emerald Oil and Eastern Housing led the losers.
Indices in the Chittagong Stock Exchange (CSE) closed lower while turnover in the port city bourse fell by 66% to TK8.2 crore.
