DSE market cap drops by Tk63,646cr in nine days
The DSEX closed at 5,250 points on the day, the lowest in 37 months
The market capitalisation at the Dhaka Stock Exchange (DSE) plunged by Tk 63,646 crore in the last nine days as the broad index continued to decline following each session.
By the end of today's session, the total market capitalisation stood at Tk6.47 lakh crore. The DSE's major index, DSEX, lost 61 points to close at 5,250.
Over the nine-day period, the DSEX has lost a total of 446 points.
Stockbrokers and market experts said several negative factors are contributing to this decline. The rising interest rates, fears of taxes on individual investors' capital gains from listed securities, subdued corporate earnings, and a serious confidence crisis due to the regulator's intervention are collectively hurting stock bulls, they added.
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They further said, the upcoming budget may bring some negative news for the stock market, which will likely increase the frustration among investors.
EBL Securities said in its daily market review, the relentless bearish spell in the country's capital market has been prolonged for nine continuous sessions, with the majority of scrips extending their price erosion due to the enduring pessimism pervading the trading floor with no sign of revival yet.
The market extended its downturn as investors shy away from taking positions in equities while losses continued to mount on their portfolios amid the majority of scrips turning into falling knives and being stuck at the revised lower circuit without having sufficient buyers, it added.
In the last nine days, the number of beneficiary owner (BO) accounts with share balances dropped by 4,484, while the number of BO accounts with zero share balances rose by 5,580.
Meanwhile, market participation remained sluggish, with total turnover falling to a nearly 5-month low, decreasing by 37% to Tk322 crore yesterday.
All the sectors displayed dismal returns, out of which life insurance, jute and paper exerted the most corrections on the bourse.
Out of the 396 issues traded, 32 advanced, 321 declined and 43 remained unchanged at the DSE.
