The market capitalisation of Dhaka Stock Exchange has declined by Tk 84,460 crore over the past one and a half months, with its general index losing 2,592 points due to the ongoing volatility in the country’s securities market.
The market capitalisation of the country’s premier bourse came down to Tk 2,83,611 crore on Thursday, declining by Tk 21,015 crore in just five minutes of trading from that of Tk 3,04,626 crore on Wednesday.
The market capitalisation of DSE hit its highest mark at Tk 3,68,071
crore on December 5, when the booming bourse’s general index also hit the all-time high.
The DSE general index on Thursday slid to 6,341 points, the lowest in the past five and a half months, after the market plunged by a whooping 600 points in just five minutes of trading. The trading was halted five minutes after it had begun because of the massive crash.
The DSE’s general index stood at 8,918 on December 5, when the bourse’s daily turnover hit a record high of Tk 3,249 crore.
Although the DSE saw a booming rise last year, it started to fall from the second week of December, when banks and non-bank financial institutions started to sell shares to book profits before their yearend book closure, market analysts said.
‘As the big investors have virtually abandoned the market, the small investors, with high-priced shares in their hands, are now complete hapless,’ said one of the analysts.
‘As the market lacks the liquidity of big investors, the panic-stricken investors are selling their stocks at whatever price they can get, a trend that is pulling down the general index as well as the market capitalisation,’ he said.
The market capitalisation of the DSE grew to Tk 3,50,800 crore on December 30, 2010 from Tk 1,91,4046 crore on December 3, 2010 while its general index had risen by 82 per cent from 4,568 points to 8,290 points in the same period.
