Dhaka, Bangladesh (BBN) – Bangladesh’s stocks witnessed yet another setback on Monday as investors dumped their holdings to prevent further losses.
DSEX, the prime index of Dhaka Stock Exchange (DSE), slumped 53.42 points or 1.12 per cent to settle at 4,699—the lowest level since November 17, 2016.
Two other indices also ended lower. The DS30 index, comprising blue chips, fell 19.41 points to finish at 1,648 and the DSE Shariah Index lost 16.32 points to close at 1,074.
Turnover, another important indicator of the market, stood at BDT 3.05 billion, which was nearly 19 per cent higher than the previous day’s turnover of BDT 2.57 billion.
Worried investors continued to dump their holdings amid relentless fall in share prices in recent times against the backdrop of a depressed market outlook, according to experts.
They also said panic spread across the market as several companies declared “no” dividend during the trading hours. Most other companies that declared dividends on the day also could not meet expectations of the investors.
Eight listed companies declared on Monday “no” dividend for the year ended on June 30, 2019.
The state-run ICB recommended only 10 per cent stock dividend for the year ended on June 30, 2019, its lowest in the last 12 years, to the frustration of investors.
Salvo Chemicals, BD Thai, Renwick Jajneswar, Generation Next Fashions and Khan Brothers PP Woven Bag Industries dominated the losers’ chart on the day. They plunged 33.60 per cent, 28.20 per cent, 26.47 per cent, 25 per cent and 19.71 per cent respectively following their “no” dividend declarations.
The investors had been suffering a crisis of confidence for long and the recent fall of the index just added to their concern, they explained.
They also said the institutional investors were mostly in a hands-off position amid a liquidity crunch while small investors were not confident enough to inject fresh funds into the market amid the ongoing dismal market trend.
On the other hand, the Chittagong Stock Exchange also ended lower with its CSE All Share Price Index – CASPI –shedding 135 points to settle at 14,325 and the Selective Categories Index – CSCX –losing 79 points to finish at 8,710.