DSEX closes with 96 points loss in first day after lifting floor price
At the end of the session, DSEX settled at 6,240 points
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE) ended the first day, with a loss of 96 points after lifting the floor price.
Market insiders said, the institutional buying appetite in blue chip stocks like BRAC Bank, and Beximco Pharma at the lowest intra-day price levels helped arrest the fall and the major index recovered some 118 points after falling 214 points at the opening on Sunday (21 January).
At the end of the session, DSEX settled at 6,240 points.
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Meanwhile, the blue-chip index DS30 ended the day with green trajectory with 7 points gained to reach at 2,137.
During the session, only 54 scrips advanced, while 296 declined and 36 remained unchanged.
The turnover at the DSE was Tk588 crore, which was 7.5% lower than the previous session.
DSEX lost 209 points or 3.29% in the first 10 minutes of the 21 January trading session as the securities regulator removed the floor price on Thursday (18 January) evening after 18 months.
At session opening till 10:13am, the DSEX stood at 6,127 points, 3.29% down from the previous session.
The turnover at the time was Tk68 crore.
Only BD Thai Aluminium, Reckitt Benckiser and Grammen Sheme 2 mutual fund rose in the first session.
The institutional buying appetite in blue chip stocks like BRAC Bank, and Beximco Pharma have been at the lowest at intraday, price levels helped arrest the fall and the major index recovered some 75 points after falling 220 points at the opening.
The pivotal question for investors revolves around how the market will respond in the absence of floor prices for the 379 scrips collectively constituting almost two-thirds of the total market capitalisation.
Meanwhile, the CEO Forum, representing the top 30 institutional brokerage firms decided to buy Tk1-5 crore worth of shares today from each of their dealer code to support the market.
They also agreed to no selloff from their dealer accounts.
The market should turn around if panic selling can be averted and they urged their teams to aware their clients about the potential of undervalued stocks, they said.
Also, they decided to tolerantly handle the margin accounts under stress, said Md Sayadur Rahman, president of the forum.
With escalating interest rates and energy costs, the stock market is poised for a real battle between the bulls and bears yesterday, following an 18-month-long floor price protection.
The Bangladesh Securities and Exchange Commission (BSEC) on 18 January evening removed floor prices for all but 35 selective stocks, heightening investors' concerns about potential capital erosion and fueling their eagerness to acquire undervalued stocks in the event of a market decline.
The pivotal question for investors revolves around how the market will respond in the absence of floor prices for the 379 stocks collectively constituting almost two-thirds of the total market capitalisation.
Institutional investors, including brokers, dealers and merchant bankers, are expected to be a supportive force for post-floor trading, especially for undervalued stocks, said Saiful Islam, president of the DSE Brokers Association.
