Stocks tumble at open on interest rate concerns

| Update:
May 12, 2022 12:18:21

The market fell at the open on Thursday as investors continued their selling spree on fears of another slide amid concerns of regulatory intervention in interest rates to fight inflation.

Following yesterday’s sharp fall, the DSEX, the main index of the Dhaka Stock Exchange (DSE), fell 19.67 points or 0.29% to 6,572, after the first hour of trading at 11:00.

Two other indices have also been trending negative so far with the DS30 index, made up of blue chips, losing 5.30 points to hit 2,415 and the Shariah index (DSES) losing 2.10 points to settle. at 1,431.

Turnover, another important indicator of the market, stood at Tk 2.08 billion after the first hour of trading at 11:00 am.

Market insiders said the global situation and unstable commodity market prices made investors concerned about the country’s macroeconomic situation.

The interest rate issue, the recent rise in edible oil prices and economic turmoil in Sri Lanka have also rattled investor sentiment, a major broker said.

Investors fear the central bank will raise lending and deposit rates amid rising inflation, which could lead to a liquidity crunch in the capital market, he said.

Of the issues traded so far, 219 have declined, 85 have advanced and 61 issues have remained unchanged on the DSE floor so far.

Shinepukur Ceramics was the most traded stock so far with shares worth Tk 218 million, closely followed by JMI Hospital Requisite Manufacturing, RD Food, ACI Formulations and Beximco.

The Chittagong Stock Exchange has also been trending lower so far with its All Stock Price Index (CASPI) – losing 48 points to 19,280, the Selective Categories Index – CSCX lost 29 points to reach 11,569 at 11:00 a.m.

Of the issues traded so far, 101 declined, 38 advanced and 26 remained unchanged with turnover of 80 million taka.

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Stephen V. Lee