Bangladesh stocks Monday suffered the highest single-day loss in almost two years as 'panic-driven' investors scrambled to sell off their shares to pocket the cash, in what seems a current global syndrome.
Amid a near-freefall in share prices on the day, DSEX, the broad index of Dhaka Stock Exchange (DSE), lost 182.12 points -- rated highest single-day fall since March 16, 2020.
Previously, the DSEX had shed 181 points on April 4, 2021 and 196 points on March 16, 2020, in the wake of timid trading under shadows of the Covid-19 pandemic.
Following the recent price correction, the DSEX had lost a total of 492.16 points since the Ukraine-Russia war crisis emerged on February 24, and the index settled at 6456.51 on Monday.
Experts, however, rule out the possibility of the impact of Ukraine-Russia war on the recent sharp falls witnessed by the country's stock-market.
"There is no reason for such sharp falls due to the Ukraine-Russia war as our market is not integrated with global markets," says Faruq Ahmad Siddiqi, a former chairman of the securities regulator.
He smells a rat in the row. Some unscrupulous groups might have spread rumours to bag shares at lower prices, the securities expert says.
"The share price of Bangladesh Shipping Corporation (BSC) can decline as one of its ships was under sudden attack in Ukraine. But why are the share prices of other securities declining?" Mr Siddiqi poses the question.
A ship of the BSC, namely MV Banglar Samriddhi, came under missile attack at a Ukrainian port Wednesday and a sailor was killed.
The DSEX position observed Monday was the lowest one since August 2, 2021, the day when it settled at 6481.57.
Market analysts say the sectors having significant influence on broad index saw major correction on the day through selloffs and intensified the freefall of the broad index.
The Dhaka bourse opened Monday's session on a downbeat note -- and its gauge, DSEX, shed 91 points within 41 minutes of trading in temper tantrums.
A weak recovery stance was observed later -- but the silver lining faded away shortly afterwards, exhibiting another gradual slide till closure.
At the end of the session, the DSEX settled at 6456.51 with a loss of 2.74 per cent or 182.12 points.
The Shariah-based-index DSES declined 2.55 per cent or 36.61 points to close at 1394.40.
Another barometer, DS30, comprising blue-chip securities, declined 2.64 per cent or 64.54 points to close at 2374.39.
Of 379 issues traded, only seven advanced while 364 declined and eight were unchanged on the premier bourse.
Market reviews of a stockbroker say the index witnessed sharp fall as many nervous investors liquidated their holdings to avoid further loss amid fears of an inflation shock as crude-oil price is on the rise amid the confrontation at the oil hubs.
The Dhaka bourse Monday posted a turnover of Tk 7.40 billion, which was, however, 13.61- per cent higher than the turnover of the previous session.
Asked, a senior official of Modern Securities says no one can say for sure the specific reason behind Monday's sharp loss as discussions on war crisis and surges in commodity prices emerged abruptly.
"Investors' trust is tarnished when unjustified sharp losses are observed repeatedly," says Golam Rabbani Hamidi, a general manager at Modern Securities.
Of the large major sector which witnessed price correction, general insurance declined 4.57 per cent, financial institutions 4.09 per cent, life insurance 3.60 per cent, engineering 2.06 per cent, fuel & power 1.93 per cent, pharmaceuticals & chemicals 2.34 per cent, textile 3.33 per cent and telecommunication 1.01 per cent.
Of the large-cap companies which saw price correction, the share price of Grameenphone declined 1.70 per cent, Beximco 3.22 per cent, Renata 1.36 per cent, United Power Generation & Distribution Company 1.09 per cent, British American Tobacco Bangladesh Company 3.03 per cent, and MJL Bangladesh 1.85 per cent.
These biggies have notable impact on broad-index movement because of their large market caps.
Beximco topped the scrip-wise turnover chart with a value of Tk 412 million followed by Bangladesh Shipping Corporation Tk 300 million, British American Tobacco Bangladesh Tk 169 million, Orion Pharma Tk 141 million and Fortune Shoes Tk 139 million.
BDCOM Online was the number-one gainer with a rise of 9.75 per cent or Tk 2.30 to close at Tk 25.90 each.
Meghna Condensed Milk was the worst loser, declining 10 per cent or Tk 2.0 to close at Tk 18 each. The small-cap companies, including 'Z'-category minnows, on Monday lost prices on the premier bourse.
CASPI, the benchmark index of Chittagong Stock Exchange (CSE) in the seaport city, Monday saw a decline of 2.34 per cent or 455.36 points to close at 18989.12.
Of 294 issues traded, 19 advanced, 254 declined and 21 remained unchanged. And the port-city bourse, CSE, posted a turnover of Tk 207.17 million.
