Stocks plunge further as election, US visa worries mount
After exhibiting a mixed performance on Wednesday, Dhaka bourse equity indices plummeted at the beginning of the week as investors kept liquidating their holdings amid growing concerns over US visa sanctions and political issues.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), fell by 19 points to 6,265 on Sunday, compared to the previous trading session. Shariah index DSES and blue-chip DS30 also settled in the red terrain at 1,357 and 2,136 points respectively.
The market witnessed an increase in investor participation though, as the daily turnover rose by 26% to Tk531 crore.
At the port-city bourse Chittagong Stock Exchange, the all share price index Caspi lost 19 points and settled at 18,560 while turnover declined by over 76% to Tk12.1 crore on Sunday.
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Richard D' Rozario, managing director of Global Securities and president of DSE Brokers Association (DBA), told TBS, "The political situation regarding the upcoming general election is deepening investors' predicament. As a result, they are selling shares and moving to the side lines."
"Now is the chance to invest in fundamental stocks as shares of those companies are stuck at floor prices."
"But the transactions are mostly concentrated in a handful of weak companies. Until share trading of good companies increases, there will be no big change in the market," he added.
Md Sajedul Islam, managing director of brokerage firm Shyamol Equity Management and vice-president of the DBA said, "There is fear in the market about the political situation and US visa sanctions, which is why many are selling shares."
"Weak company stocks soaring while good company shares are stuck on the floor is not a good sign at all for the market. But it's still not too late to invest in fundamental stocks," he added.
On the sectoral front, general insurance contributed the highest 27.7% to the day's turnover, followed by food and allied adding 17.1%, and paper adding 9.5%.
Out of the 302 issues traded, only 37 advanced, 120 declined and 145 remained unchanged on the DSE trading floor.
