Share market in a shambles!
A lingering bearish spell in the Dhaka Stock Exchange (DSE) has eroded much of the confidence of retail investors, who want to flee a market hit by row over selection of strategic partners.
The investors are now facing fund problem due to the drastic fall in the prices shares in the market.
The prime index of Dhaka stock exchange lost 488 points to 5613.68 on Tuesday, plunging from 6,102.31 on February 14, 2018.
Losers took a strong lead over the gainers on Tuesday, as prices of 291 securities declined, 18 advanced and 27 remained unchanged out of the 336 issues that were traded on the DSE floor.
On the other hand, the DS30 index, comprising blue chips, fell by 165 points to finish at 2085.54 during a month, whereas the DSE Shariah Index declined by 77.44 points to settle at 1333.19 points a span of one month.
However, turnover on Dhaka Stock Exchange (DSE) dipped to Tk 2.82 billion on Tuesday, recoding a decline of more than 78 percent from Tk 5.04 billion on February 14, 2018 as investors were mostly inactive amid persistent fund shortage.
It was the lowest single-day transaction in the last week, hitting almost 20 months low, while turnover was recorded at Tk 2.72 billion on July 11, 2016.
The market is passing through a difficult situation as most of investors are watching overall investment atmosphere in the country.
Besides, the investors’ confidence has been dampened by the conflict between the regulator -- Securities and Exchange Commission -- and the stock exchanges, especially the Dhaka bourse, in choosing strategic partner.
A market analyst and stock investor seeking anonymity told Bangladesh Post that the Bangladesh’s stock markets are mostly controlled by unscrupulous traders, who have been continuously pushing the market into a volatile situation.
Although these type of players prevail in stock markets all over the world, but such manipulators are adversely influencing the Bangladesh market.
The government and the stock market regulator should immediately identify such types of businessmen and take stern actions against them, he said categorically.
Port city bourse CSE also witnessed a long bear-run with its selective category index (CSCX) losing 800 points in a span of one month to close at 10,498 on Tuesday.
On the other hand, the prime index of the CSE was lower by almost 1,337 points during a month to close at 17,386 on Tuesday.
Market expert and economist professor Abu Ahmed told Bangladesh Post, “Market regulators should take some steps after monitoring the market properly, but they are totally silent.”
He said it is true that most of the shares in the market are cheaper now, but most of investors are also inactive to invest fresh money amid fund crisis.