The benchmark general index of Dhaka Stock Exchange fell for two days in a row as investors went into sell-offs, fearing another losing spell ahead.
The DSE general index (DGEN) lost 154 points, or 2.5 percent, to close at 6,018 points on the day.
The DSE general index lost 370 points in two days’ trading on the DSE floor. The index had gained 810 points on the past two trading days after suffering a big loss of share prices in the past few weeks.
Market analysts observed that fears of further losses gripped investors.
Some big institutional investors are still inactive in the market because of a tough stance of the central bank on investment of commercial banks in the capital market, they added.
Prof Salahuddin Ahmed Khan, who teaches finance at Dhaka University, said: “State companies failed to stabilise the market because some institutional investors try to leave the market by selling all their securities.”
Small investors who lost most of their capital held in shares also try to leave the market after partial recoveries, he added.
Akter H Sannamat, a market analyst, said most investors went for selling their stakes following a rumour that the government will not give funds to state-owned companies to buy shares. Others are waiting for a chance to pare down their losses and leave the market, he added.
Share prices of banks declined by 3.27 percent, non-bank financial institutes 1.74 percent, fuel and power 1.99 percent, general insurance 3.17 percent, life insurance 2.44 percent, pharmaceuticals 1.32 percent, mutual fund 1.06 percent and telecommunication 2.88 percent.
Courtesy of The Daily Star
