Good shares keep falling, DSEX dips 140 points in 2 days

The capital market has recorded another significant downfall throughout the last few days, with the daily turnover nearing the threshold of Tk 5 billion and decline in most of the traded issues.

At the Dhaka Stock Exchange (DSE), the benchmark index -- DSEX -- declined by 58 points or 1 per cent to 5,527 on Wednesday, which is the lowest since 25 April. The index plummeted by a staggering 140 points or nearly 2.5 per cent in the last two days.

The Chittagong Stock Exchange (CSE) also settled on red terrain, with its All Share Price Index (ASPI) declining by 105 points on Wednesday. However, it witnessed no significant fall in daily turnover.

The Dhaka bourse’s main index now stands at a level which is regarded as a psychological threshold – 5,500. When stocks dip below or hover around the psychological benchmark, it triggers renewed panic among investors and inspires them to offload their shares and exit the market.

The situation was evident on Wednesday as investors showed a tendency to sell even fundamentally sound shares. In the aftermath, there was a significant fall in prices of shares with strong fundamentals.

According to LankaBangla Securities, the decline in prominent shares, including British American Tobacco, Reneta, LafargeHolcim, Grameenphone, Square Pharmaceuticals, Beacon Pharma, Pubali Bank, Best Holdings, Beximco Pharma, and Orion Pharma, contributed significantly to the overall decrease in the DSEX index.

These 10 companies were responsible for more than 50 per cent or at least 30 points out of the total decline of 58 points on Wednesday.