The country’s stock market continues to see falling prices. Following several days of decline, the market saw a steep drop yesterday, Sunday. With most traded shares falling in price, the Dhaka Stock Exchange’s (DSE) main index, the DSEX, fell 41 points that day.
Those involved in the market said the country’s industrial sector has been struggling with a gas and power crisis for more than a month. This has severely disrupted production in the industrial sector, which has in turn started affecting industrial output and business more broadly. The government has said there is no immediate solution to the gas and power problems. As a result, stock market investors have grown anxious over the situation.
Those involved further said many companies listed on the stock market are also suffering from the ongoing gas and power crisis. This has created selling pressure among investors. As a result, the DSEX index fell to 5,614 points yesterday.
Market analysts said the current gas and power crisis is creating problems not just for industry, but in households nationwide. The government has offered no hope of an imminent solution. Several government ministers have said a permanent solution to the problem isn’t possible overnight, and that it will take several years. In this situation, a sense of frustration has built among both industrialists and investors, and this has had an immediate impact on the stock market.
Market analysis shows trading opened yesterday at the DSE with prices rising for most companies’ shares and units. This pushed the index up at the start of trading. But prices for most companies soon began to fall. Trading ended the day with a steep drop in the index. The DSEX closed 41 points lower than the previous day, at 5,614 points. Among the other two indices, the DSE-30, made up of 30 selected blue-chip companies, fell 12 points from the previous day to 2,122 points. The DSE Shariah index fell 4 points to 1,128 points. Shares and units rose in price for just 49 of the companies that traded. In contrast, 309 companies’ shares and units fell in price. Another 34 remained unchanged.
Trading on the DSE totaled 5.18 billion taka. The previous trading day saw 4.671 billion taka in trading. This marks an increase of 512 million taka in trading compared with the previous trading day.
Shares of Sayham Textile played the largest role in this trading. The company saw 267.5 million taka worth of shares traded. Sharp Industries, in second place, saw 212.4 million taka worth of shares traded. Sayham Cotton was in third place, with 167.7 million taka worth of shares traded.
Also among the 10 companies leading trading on the DSE were Paramount Textile, Summit Alliance Port, Lavello Ice Cream, Beximco, Malek Spinning, ML Dyeing and IPDC Finance.
At the country’s other stock exchange, the CSE, prices rose for shares and units of 42 of the 174 companies that traded. In contrast, 112 fell in price and 20 remained unchanged. The CSE’s overall price index, the CASPI, fell 75 points. Trading totaled 110.1 million taka. The previous trading day saw 212.3 million taka in trading.
DSE Brokers Association of Bangladesh (DBA) president Saiful Islam said the market has been affected by various negative sentiment. He said the ongoing gas and power crisis isn’t going to ease anytime soon, and that this will affect production. However, he advised investors to remain patient.
Investment Corporation of Bangladesh (ICB) chairman Professor Abu Ahmed said the market will always have its ups and downs, which is normal. However, he said, the energy crisis has had something of a negative effect.