Stocks continue to bleed despite circuit breaker

Share market illustration

The Dhaka bourse has continued to see free fall in indices on Thursday, despite the regulator’s move to keep the stocks afloat through a 3 per cent circuit breaker

In the opening hour, the key index of Dhaka Stock Exchange (DSE), DSEX, dipped by nearly 100 points. It, however, managed to rebound to some extent in the following hours. 

The benchmark DSEX index fell by 60.48 points to stand at 5518 on the day, while the DSES lost 12 points and the DS30 index lost 10 points. 

Out of the issues traded on the day, a staggering 300 shares declined, while only 69 managed to advance and 27 remained unchanged. 

As per the rules, the shares can decline by a maximum of 3 per cent. It was observed that most of the shares that declined in the opening of the day lost prices to the maximum limit. It dragged down the index to a large extent. 

Investors and market insiders have blamed the reduction in the extent of the circuit-breaker for the free fall in share prices. They said the investors are struggling to sell and purchase shares due to the low circuit-breaker. Hence, the regulatory decision may impact the market adversely.