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Stocks plunge at opening on economic worries

| Updated: May 18, 2022 09:59:29


Stocks plunge at opening on economic worries

The markets fell sharply at opening on Monday as the nervous investors kept their selling binge, fearing further fall, amid concerns over the country’s macroeconomic situation.

Following the previous week’s fall, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 48.87 points or 0.75 per cent to 6,516, after the first hour of trading at 11:00 am.

Two other indices also saw a downturn till then with the DS30 index, comprising blue chips, losing 19.25 points to reach 2,387 and the Shariah Index (DSES) shed 6.35 points to stand at 1,425.

Turnover, another important indicator of the market, amounted to Tk 2.75 billion after the first hour of trading at 11:00 am.

Market analysts said fear over possible bank interest rate hikes, the global commodity price instability coupled with Sri Lanka’s economic and political turmoil hit investors’ sentiment.

The investor fear over the regulatory intervention in the interest rate ceiling to fight the rising inflation while the recent edible oil price hike and Sri Lanka’s economic and political crisis put a negative impact on the investors’ minds, said a merchant banker.

Of the issues traded till then, 258 declined, 75 advanced and 42 issues remained unchanged on the DSE trading floor.

Shinepukur Ceramics was the most traded stock till then with shares worth Tk 398 million changing hands, closely followed by JMI Hospital Requisite Manufacturing, Beximco, Fu-Wang Ceramics and IPDC Finance.

The Chittagong Stock Exchange also saw a downward trend till then with its All Shares Price Index (CASPI)—losing 146 points to stand at 19,102 the Selective Categories Index – CSCX shed 87 points to reach 11,462 at 11:00 am.

Of the issues traded till then 110 declined, 32 advanced and 20 remained unchanged with Tk 80 million in turnover.

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