Dhaka, Bangladesh (BBN) – Dhaka stocks tumbled by more than four per cent on Monday, jittered by the probe report on share scam published in the media.
The DSE General Index (DGEN), the main gauge of the market, plunged 293.82 points or 4.48 per cent to close at 6262.69, the lowest in two weeks.
It was the largest single-day fall since March 2 this year when DGEN lost 309 points.
Heavy selling pressure came in the mid session on major sectors, including financial and energy, pulling down the indices.
Analysts linked to this sharp fall of the investors’ wary about the market’s future direction because of published probe report and central banks’ initiative to amend the existing banking companies act relating to investment in the capital.
The market breadth was also negative as out of 261 issues traded, only 27 gained, 230 lost and four remained unchanged.
Market analyst Yawer Sayeed pointed to the nervousness of the market. “The market is in the state of confusion out of probe report.”
The bank, the market’s bellwethers, took a strong jolt over the news of amending banking company act to curb banks’ exposure in the stock market.
On Thursday, the Bangladesh Bank said that it was mulling to restrict banks’ exposure in the stock market as a percent of equity while current exposure is calculated based on the deposit or liability.
“Investors got frightened and wanted to stay at sideline speculating the negative outcomes of the report,” said LankaBnagla Securities in its daily market commentary.
All the major sectors suffered across the board. Non-banking financial institutions slipped 5.37 per cent, telecommunications 2.35 per cent and energy 3.93 per cent.
BBN/KMS/SI/AD-11Apr11-8:25 pm (BST)