Stock indices experienced a decline today as investors grappled with uncertainty stemming from recent alterations in the criteria for downgrading companies to the “Z” category, influencing overall market sentiment.
Market insiders pointed out that the regulatory body’s inconsistent decisions regarding downgrading companies to the “Z” category have created uncertainty and diminished investor confidence.
Ending speculation, today saw 22 companies officially downgraded to the “Z” category following the new order from the Bangladesh Securities and Exchange Commission (BSEC), leading to significant selling pressure on all newly downgraded stocks.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped by 53 points or 0.83% to close at 6,283 points, while the blue-chip index DS30 lost 27 points to settle at 2,129.
The downward trend marked the extension of the falling streak for five consecutive days, resulting in a loss of 164 points.
Meanwhile, the turnover value at the DSE experienced a 14% decline, falling below the Tk1,000 crore mark and settling at Tk924 crore by the end of the session.
Out of the total traded scrips, 107 advanced, 256 declined, and 29 remained unchanged.
The Chittagong Stock Exchange’s all-share price index CASPI also saw a decline of 202 points, closing at 18,088.
Read More: Stocks down today after 22 companies downgraded to ‘Z’ category