Special Correspondent : The key index of the Dhaka Stock Exchange (DSE), DSEX, fell below the 5,000 mark for the first time in six months on Thursday as persistent pessimism and wavering confidence prompted investors to shy away from taking positions in equities while losses continued to mount on their portfolios.
DSEX lost 49.88 points, or 0.99%, and closed at 4,972.60. Stocks continued falling for the ninth consecutive session at the Dhaka bourse. The blue-chip index DS30 (-1.21%), the Shariah-based index DSES (-1.47%), and the large-cap index CDSET (-0.61%) closed at 1,845.01, 1,104.70, and 1,022.84 points, respectively. Most of the large-cap sectors posted negative performance on the day.
Meanwhile, trading activities also remained stagnant, with total turnover in the DSE being low at Tk 3.7 billion. Volume elevated by 5%, and turnover increased by 22%. One sector out of 19 was the gainer, and 18 were on the losing side. Of the 395 scrips traded, 52 advanced, 300 declined, and 46 remained unchanged.
The Dhaka bourse is deeper in the red as unnerved investors continue trimming their equity exposure in the absence of any major trigger to revive investor confidence in the distressed market, market insiders said.
Meanwhile, recently investors demanded the resignation of Bangladesh Securities and Exchange Commission (BSEC) chairman Khondoker Rashed Maqsood, citing his inability to manage the volatile stock market.
They rallied outside the old DSE building in Motijheel on Wednesday afternoon. Protesters demanded a task force, like the one formed for the banking sector, to investigate the irregularities.
After the protest, they also took out a procession with various slogans. The procession started from Motijheel and ended in front of the DSE building in Motijheel. After the procession, they also burned the effigy of the BSEC chairman.
During the protest, SM Iqbal Hossain, president of the Bangladesh Capital Market Investors Association, said in his speech, "In the last eight months, the stock market index has only gone down, not up.
During this time, the index has fallen by about 900 points. Investors have lost about Tk 80,000 crore in this continuous decline. As the stock market has been falling for a long time, the number of investors in the market has decreased from 18 million to 7 million.
During the protest, the investors also announced an ultimatum for the removal of the BSEC chairman. The investors said that if the BSEC chairman is not removed by April 30, strict action will be announced.
This announcement sent shockwaves through the financial community, as it highlighted the growing frustration and desperation among investors. With increasing pressure on regulatory bodies, many analysts are now speculating about potential reforms that could stabilize the market and restore investor confidence.
Iqbal Hossain said the country's capital market has been in crisis for the past 17 years. "While stock markets in other South Asian countries have seen growth, our market regulator's poor decisions have left investors frustrated," he said.
He said that many investors had lost 60-80% of their capital due to repeated policy failures by BSEC.
Earlier, in March, the BSEC officials and employees staged protests, demanding the resignation of Chairman Khondoker Rashed Maqsood and three commissioners. The unrest was apparently triggered by the forced retirement of an executive director over graft allegations.
On Thursday, BEACHHATCH topped the turnover chart. EPGL was the top gainer, whereas EBL was the top loser. In the block market, shares of Tk 9.7 crore were transacted, representing a turnover of 2.66%.
The SME index, DSMEX, decreased by 12.63 points, and the market generated a Tk3.7 crore turnover, a 13% increase from the previous session.
According to the Royal Capital Financial Portal, SQURPHARMA and ISLAMIBANK contributed the most to the gains and the losses of the DSEX index on the day, and the bear dominated the market throughout the day.
In its daily market commentary, EBL Securities said that the relentless bearish spell remains dominant throughout the session in the absence of any positive trigger to revive investor confidence in the distressed market.
Market Insider said that the downward spiral in the country's capital market persists with lackluster trading activity as lingering pessimism and waning confidence keep investors on the sidelines, leaving the market mired in a state of prolonged uncertainty.
Sellers extended their dominance for seven consecutive sessions as unnerved investors continued trimming their equity exposure in the absence of any major trigger to revive investor confidence in the distressed market, they added.
The port city bourse, Chittagong Stock Exchange (CSE), also settled on red terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) fell by 25.6 and 54.4 points, respectively.