Fall in the country's stock market continues. Investors are disappointed by the fall of index for 13 days. It has been observed analyzing the market that on April 26 the prime index of Dhaka Stock Exchange was 5,813 points which has come down to 5,390 points (7.30 percent).
It is the lowest index in last one year. Earlier the lowest index was 5,373 points on May 30, 2017. On Sunday, the prime index of the Dhaka Stock Exchange (DSE) decreased 52 points. As a result, share prices of most companies have come down. During this period, transactions have decreased. Same scenario prevails in the Chittagong Stock Exchange (CSE).
Market analysts said that the increase of interest rate on bank deposits and dollar price hike have negatively impacted the stock market. Ahmed Rashid Lali, former president of the DSE Brokers Association (DBA), told the media, "The rate of interest of banks has increased tremendously. People are depositing money with banks withdrawing funds from the stock market."
Though interest rate on bank deposits had at one stage come down to 5-6 percent, some banks still give 10 percent interest on deposits. Besides, the bad performance of banks and financial institutions in the first trimester has negatively impacted on the banking sector. The stock market has also been affected by this, said Lali.
Mohammad Emran Hasan, the chief executive officer of Shanta Asset Management, said "Foreign investors are selling their shares due to the devaluation of taka against dollar." Explaining this, Emran said, "When price of dollar increases, foreign investors suffer loss."
He thinks that foreign investors are selling their shares fearing further increase in the price of dollar. Emran has showed two more reasons of the fall in the stock market indices. One is the coming Eid and another is the next budget. He said, "Investors are observing the market ahead of the budget and the election. During the Ramadan, investors sell some shares for Eid shopping."
Individual investor Tanvir Ahmed said, "The index comes down somewhat during the month of Ramadan. But I haven't expected such fall. I am counting a loss of a huge amount of money.""I can't sell my shares at this moment. If I sell this, my capital will decrease about 20 percent," he added.
Latest News