Dhaka, Bangladesh (BBN) – Dhaka stocks fell sharply by nearly two per cent on Wednesday, extending losing streak for the fifth straight session as pending outcome over probe report on share debacle dented investor confidence further.
The DSE General Index (DGEN), the main gauge of the market, plummeted by 117.43 points or 1.87 per cent to 6132.56, sinking to four week low.
Market breadth was very negative as majority of 251 issues traded, 20 gained, 230 declined and one remained unchanged.
In a similar fashion, trading activity deteriorated further as broad market turnover was Tk 6.12 billion, down by 22.76 per cent over the previous session and lowest in more than six weeks.
Sentiment further weakened in the bourse. Flow of liquidity has substantially declined due to tight money market, big investors’ limited exposure to stock market after submitting probe report to the government, said LankaBangla Securities in its daily market commentary.
It also said, “Investors took conservative view as most of outcomes of probe report are still pending. Also a report regarding restriction for government officials’ investment in the stocks made the investors wary.”
The probe panel submitted its findings on share debacle to the finance minister on March 7 and named individuals and institutions for the market’s debacle. It is expected to publish by the government soon.
All the sectors lost. Banking issues, which account for more than 30 per cent of the market cap, shed 1.48 per cent. Non-banking financial institutions slipped 2.54 per cent, telecommunications 1.87 per cent and power 1.38 per cent.
BBN/KMS/SI/AD-20Apr20-5:57 pm (BST)
