Dhaka, May 10: Dhaka stocks plunged more than two per cent Tuesday after a see-saw movement throughout the trading hour with substantially low turnover as the investor's confidence remains in 'low level' in the current bearish market.
"Nervousness gripped the investors and many of them sold shares fearing further fall in the index," said a stock broker.
However, the market opened with a positive mood, gaining more than 38 points within five minutes. But in next 20 minutes, it shed 80 points.
At the end of the day, the benchmark DSE General Index (DGEN), main gauge of the market shed 118.93 points or 2.10 per cent to close at 5,519.87.
The broader All Shares Price Index (DSI) came down to 4,596.48, shedding 93.87 points or 2.0 per cent. The DSE-20 index comprising blue-chip shares also lost 47.43 points or 1.28 per cent to 3,644.33.
The market is in the shaky mood and could not get strength as there is no support from the big and institutional investors which are the main force of the market," said Ahmad Rashid Lali, managing director of the Rashid Investment Services.
"Big and institutional investors are still far from the market as the government announced different policy measures including forming taskforce and re-investigation against the big traders which continued to have negative impact in the market," Mr Ahmad said.
The liquidity crunch in the money market also affecting the share market as many of them prefer to deposit money in banks instead of investing in the volatile share market, he said.
Mr. Ahmad said the market will not be stable unless the government gives a positive signal to bring back investors' confidence especially big and institutional investors'.
Share prices of all major sectors closed red zone except cement. Cement sector gained 1.01 per cent on the day as Lafarge Surma Cement advanced substantially following its corporate declaration.
Among the major sectors, banks the market's bellwether lost 1.72 per cent, NBFIs 2.16 per cent, telecommunications 2.14 per cent and fuel and power 1.86 per cent.
A total of 46.69 million shares changed hands on the day against 51.37million in the previous session. The trade deals also decreased to 98,706 against Monday's 116,828.
Total market capitalization also decreased substantially and stood at Tk 2,577.18 billion against Tk 2,620.23 billion in the previous session.
Turnover value continued to decline and stood at Tk 3.82 billion, down by 10.54 per cent, from Tk 4.27 billion in the previous session.
Most of the issues traded on the day lost in prices as out of 245 issues traded, only 28 advanced, 215 declined and two remained unchanged.
Source: The Financial Express
