Stocks collapse amid liquidity crisis in financial markets
Dhaka shares plunged on Monday after declining slightly in the previous session as investors decided to sell off stocks heavily amid sudden stress on money market liquidity.
DSEX, the key index of the Dhaka Stock Exchange, lost 0.89%, or 63.37 points, to close at 7,022.29 points on Monday after losing 6.14 points in the previous session.
Before the losses in two sessions, the DSEX had gained 162 points in four sessions.
The market started with some upside down moves and fell sharply to end the session deep in the negative zone as investors opted for massive sell-offs, market participants said.
In addition, investors have become cautious following media reports that many banks have faced a shortage of liquidity in recent days due to an increase in lending activity.
In addition, the Bangladesh Bank has recovered around Tk 70,000 crore from the banking system by issuing treasury bills in the past four months.
EBL Securities said in its daily market commentary: “Growing concerns over liquidity stress in the money market are also viewed with caution by investors.
The stock prices of all but two banks fell that day following a significant rise in their stock prices in previous sessions.
Average share prices of the banking and non-bank financial institutions sectors fell 2.9% and 1.7% respectively.
In addition, the transactions of around 20 companies, including Beximco Pharmaceuticals, BEXIMCO, Square Pharmaceuticals, United Power Generation Company and GPH Ispat, remained on hold for record dates regarding corporate statements that weighed heavily on the figure. stock market business as well as on the Monday index.
DSE revenue fell to Tk 1,226.04 crore on Monday from Tk 1,786.27 crore in the previous session.
Due to the low attendance on the trading floor, many investors became nervous that day, market participants said.
Among the leading companies, the stock prices of British American Tobacco Company, City Bank, LankaBangla Finance and LafargeHolcim Bangladesh fell on that day.
The market gained momentum ahead of the two-day losses after the Bangladesh Securities Commission authorized the Capital Market Stabilization Fund on November 16 to lend Tk 100 crore to the Bangladesh investment company for investments in the stock market and removed the index margin. credit facilities on Nov. 15, market operators said.
DS30, a composition of 30 large-cap companies, fell 0.62%, or 16.85 points, to close at 2,666.99 points on Monday.
Of the 373 scripts traded on the DSE on Monday, 216 declined, 104 advanced and 39 remained unchanged.
The share price of ACME Pesticides Limited, which debuted on November 14, soared from the high allowed on the seventh day to close at Tk 19.3 per share on Monday.
The DSES Sharia Index lost 0.29%, or 4.29 points, to 1,470.97 points.
The DSMEX index, an index of the SME platform, fell 0.73%, or 7.5 points, to close at 1,013.12 points on Monday.
One Bank topped the turn-around table with shares valued at Tk 142.57 crore changing hands that day.
IFIC Bank, NRB Commercial Bank, First Security Islami Bank, Fortune Shoes, Paramount Textiles, Orion Pharmaceuticals, Delta Life Insurance, Premier Bank and Mercantile Bank were the other top revenue leaders for the day.