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Bank & Finance - Corporate - October 7, 2023

Capital market lost Tk 2000cr capital

Since starting US visa ban

Staff Correspondent: The stock market has been falling since the news of the US visa ban. The market capitalization of Dhaka Stock Exchange (DSE), the main stock exchange, has decreased by more than Tk 600 crore as the share prices of most companies fell over the last week. At the same time, all the indices have decreased. However, the daily average transaction has slightly increased.
On September 22, the US State Department announced the visa ban through a press release. After that, the country’s stock market traded for two weeks. Investors have seen a decline in these two weeks. And the market capitalization of DSE fell by more than Tk 2000 crore in two weeks.
Although the news of the US visa ban has caused unknown panic among investors, the stock market officials say that the stock market has no direct connection with the US visa ban. So, it is not reasonable for investors to panic about this. Share prices are falling as investors are selling shares at lower prices.
A review of the market shows that only 37 shares and units of the companies that participated in trading on the DSE in the last five working days have registered their names in the price increase list. On the contrary, the price has decreased by 120. And the price of 205 remains unchanged. Most of these firms are stuck at the floor price (minimum price) with prices unchanged. Investors are not able to sell shares and units of these companies as there are no buyers.
The market capitalization of DSE stood at Tk 776,777 crore at the end of the trading of the last working day of the week as the share prices of most of the companies fell. Which was Tk 777,475 crore on the last working day of last week. That is, the market capitalization of DSE has decreased by Tk 698 crore or zero decimal zero 9 percent during the week.
In the previous week, the market capitalization decreased by Tk 1,626 crore or 0.21 percent. That is, the market capital decreased by Tk 2,324 crores in two weeks. A fall in market capitalization means that the share and unit prices of listed companies have collectively fallen by that amount.
DSE’s main index DSEX fell by 22.91 points or 0.36 percent. The index fell by 25.11 points or 0.40 percent in the previous week.
The DSE-30 index, which is made up of better companies picked between the other two indices, fell by 2.70 points or 0.13 percent. The index was down 5.75 points or 0.27 percent in the previous week.
And the DSE Shariah index, which comprises companies operating on the basis of Islamic Shariah, fell by 3.79 points or 0.28 percent. 5.01 points or 0.37 percent decrease in the previous week.
While all the indices fell, the volume of transactions increased slightly. An average of Tk 467.14 crore was traded on DSE every working day of the week. In the previous week, the average daily transaction was Tk 453.58 crore. That is, the average transaction per working day has increased by Tk 13.56 crore or 2.99 percent.
And the total transaction in DSE during the week was Tk 2,335.70 crore. Last week the total transaction was Tk 1,814.33 crore. Accordingly, the total transaction has increased by Tk 521.37 crore or 28.74 percent. Total transactions increase at a higher rate because there is one less trading day in the week prior to the previous week.
Sonali Paper shares were the most traded in taka terms on DSE throughout the week. The company’s shares were traded at Tk 109.43 crore, which is 4.69 percent of the total transaction. Shares of Lafarge Holcim Bangladesh, which is in second place, were traded at Tk 92.29 million. Sea Pearl Beach Resort is in the third place with Tk 88.40 million.
Apart from this, the list of top ten trading companies includes – Fu-Wang Food, Republic Insurance, Deshbandhu Polymer, Union Insurance, Gemini Sea Food, Khan Brothers PP Oven Bag and Bangladesh Shipping Corporation.
Bangladesh Merchant Bankers Association (BMBA) President Md. Saidur Rahman told Daily Industry, “My personal opinion is that the stock market has nothing to do with the visa policy.” Because whether someone will be allowed to go to that country or not, it has nothing to do with my stock market finance.

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