Despite Bangladesh Bank’s move to ramp up the market, stock prices continued to plummet for the fifth consecutive day on Thursday.
On Wednesday evening, Bangladesh Bank relaxed the rules related to the banks’ investment in stocks in a move to boost the ailing market.
“Now, the banks will not have to sell shares to adjust their stock market exposure exceeding the permitted ceiling. The development will enable banks to make fresh investments in stocks although the stock market exposure ceiling remains unchanged at 25% of their capital,” it said.
The benchmark index DSEX lost over 43 points or 1% to settle at 4,195—its lowest since April 7 last year.
The Shariah index DSES was down almost 10 points or about 1% to 1,025. The blue chip comprising index DS30 dropped by over 20 points to 1,612.
The Chittagong Stock Exchange Selective Category Index CSCX ended at 7,850, slipping over 76 points.
Sell-off mainly on financials, cement, telecommunications and pharmaceuticals dragged down the market.
“Lower than expected performance by most companies in latest quarter earnings wrecked the investor sentiment. Investors also snubbed the news on eased rules for banks’ exposure to stock market,” according to Lanka Bangla Securities.
Earnings-driven trade helped boost activities to some extent, amassing a total turnover of Tk440 crore, up by 24% over the previous session.
The market was flooded with quarterly earnings declarations that played a major role in scrip level pricing, according to the IDLC Investments.