DSEX tumbles to 3-week low amid investors' caution
In the third straight session of selloffs, Dhaka-Chattogram stocks tumbled to a three-week low on Tuesday, and due to a lower participation in buy-selling, turnover in both the bourses dropped.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE) closed 0.19% lower at 6,298 – the lowest since 23 May.
Sellers dominated the market, which induced continuous volatility throughout the session as cautious investors preferred to liquidate their holdings in order to safeguard their funds from the declining market.
The DSEX fell by around 70 points in three days.
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Stockbrokers said investors were cautious ahead of the upcoming monetary policy statement for the July-December period amid a low liquidity and high inflation, as higher interest is considered to be a negative factor for the stock market broadly.
Also, the provision for no tax-exempted dividends in the new income tax bill hurt retail investors' confidence as they have been enjoying a tax exemption on annual dividend income of up to Tk50,000 from listed shares and Tk25,000 from mutual funds.
The market, slowly recovering for two months, had a big selloff on 6 June amid a confusion that individual investors' capital gains from stocks might not remain untaxed. And, after having two days of recovery, the market nosedived again at the beginning of this week.
On Tuesday, the DSE turnover dropped by 32% to Tk669 crore and that at the Chattogram Stock Exchange declined to Tk9.7 crore from Tk40 crore. CSCX, the major index of the port-city bourse was 0.15% down to 11,138.
Life insurance sector, in only three days this week, has lost nearly all of its over 10% rise in total market capitalisation last week.
Life insurance, general insurance, and services sectors led the losers on Tuesday, while travel, IT, and tannery sectors inched up.
45 DSE scrips advanced, 121 declined.
