Stock market facing acute buyer crisis

Mahfuja Mukul: The buyer crisis is becoming evident in the country’s stock market. After the fall of Sheikh Hasina’s government, the stock market showed a positive trend, but the last few days have seen a continuous decline. The stock market continues to decline. As the days go by, the buyer crisis in the stock market is becoming more evident. As a result, the level of decline is also increasing. Investors are constantly losing their invested capital.
After the fall of Sheikh Hasina’s government on August 5, the stock market jumped for four consecutive working days. In four days, the main stock market Dhaka Stock Exchange (DSE) has increased by almost 800 points. Seeing such a jump in the stock market, investors dream of getting out of big losses. But that dream of investors did not come true. The stock market continues to decline as before.
In continuation of the last few working days, the prices of shares and units of most of the companies participating in the transaction fell on Wednesday. As a result, there has been a big fall in prices. In the main stock market Dhaka Stock Exchange, the number of companies whose share and unit prices have increased, about 34 times more companies have been placed in the price reduction list. Again, the price of shares and units of hundreds of companies in the price reduction list has decreased as much as possible in one day.
Another stock market Chittagong Stock Exchange (CSE) has 23 times more than the number of companies in the price increase list. As a result, there has been a big fall in all the price indices in this market as well. Through this, the share and unit prices of most of the companies fell for eight consecutive working days. And since the interim government took charge, the share and unit prices of most of the companies have fallen in eight working days out of the nine trading days so far.
Stock market people say that the regulatory body is banning the purchase and sale of shares of various individuals and organizations. Due to this, there has been some shortage of buyers in the market. The companies or groups that are facing sanctions, the share prices of companies related to their interests are falling more. There is an overall volatility in the market right now. That is why the price is falling continuously.
According to the market review, trading in the stock market started on Wednesday with the decrease in the share and unit prices of most of the companies. As a result, the index becomes negative at the start of trading. The downward trend continues from the beginning to the end of the transaction. As a result, the day’s trading ended with a big fall in the price.
At the end of the day’s trading, shares and units of only 11 companies were listed as gainers. On the contrary, the price of 371 companies decreased. And the price of 12 remains unchanged.
In this, the main value of DSE, DSEX, decreased by 108 points compared to the previous day and stood at 5,606 points. The DSE-30 index, which comprises 30 companies, fell 45 points to 2,047 points compared to the previous day. And the DSE Shariah index has dropped by 28 points to 1,201 points compared to the previous day.
About this picture of the market, a member of DSE said that the sale and transfer of shares of 82 individuals and organizations associated with S Alam Group has been banned. Apart from this, the bank accounts of some others related to the stock market have been seized. All together, a kind of instability is seen in the stock market. This is the reason for such a fall in the market.
He said, due to this volatility, a section of investors are not making new investments in the market. They sit on the side lines and observe the market. If the situation normalizes, the market is likely to turn around.
Meanwhile, the volume of transactions on DSE increased slightly despite the big fall in the price index. Tk 536.83 crore was traded in the market throughout the day. Tk 518.61 crore was traded on the previous working day. Accordingly, the transaction has increased by Tk 18.22 crore.
Shares of Square Pharmaceuticals contributed the most in this transaction. The shares of the company have been traded worth Tk 746 million. The shares of UCB Bank, which is in the second place, were traded for Tk 52.48 crores. BRAC Bank is in the third place with share transactions of Tk 40.31 crores.
Apart from this, the list of top 10 institutions in terms of transactions in DSE includes City Bank, Dhaka Bank, Lavello Ice Cream, Trust Bank, British American Tobacco, Grameenphone and Sea Pearl Beach Resort.
Another stock market Chittagong Stock Exchange (CSE) overall price index CASPI decreased by 227 points. 8 out of 203 firms participating in the market rose in price. On the contrary, the prices of 187 have decreased and the prices of 8 have remained unchanged. Tk 13.16 crore has been transacted. Tk 9.19 crore was traded on the previous working day.