The stock market opened lower on Monday as the risk-averse investors kept their selling binge on major sector issues amid rising inflation.
Following the previous day’s modest correction, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 31.14 points or 0.48 per cent to stand at 6,375 after the first hour of trading at 11:00am.
Two other indices also saw a downward trend till then. The DS30 index, comprising blue chips, fell 10.42 points to reach 2,319 and the Shariah Index (DSES) lost 6.53 points to stand at 1,390.
Turnover, another important indicator of the market, stood at Tk 2.61 billion after the first hour of trading at 11:00am.
Market insiders said investors are not happy with the budgetary measures on the capital market while the instability of exchange rates and rising inflation made them cautious.
Besides, many investors remained shaky amid the rising cost of living as inflation is rising fast, they said.
Inflation jumped to 7.42 per cent in May, hitting eight year high since May 2014, according to data released by Bangladesh Bureau of Statistics on Sunday. Inflation in April was 6.29 per cent, also a 17-month high.
Of the issues traded till then, 259 declined, 60 advanced and 51 issues remained unchanged on the DSE trading floor.
Beximco was the most traded stock till then with shares worth Tk 261 million changing hands, closely followed by JMI Hospital Requisite, Anwar Galvanizing, Mono Fabrics and BSC.
The Chittagong Stock Exchange also saw a negative trend till then with its All Shares Price Index (CASPI)—losing 38 points to stand at 18,829 the Selective Categories Index – CSCX shed 23 points to reach 11,289, also at 11:00am.
Of the issues traded till then 109 declined, 29 advanced and 11 remained unchanged with Tk 160 million in turnover.