With only two more days of trading left before Eid, the pressure to sell shares has surged in the stock market, as many investors aim to raise cash for the holiday.
Several investors are selling off stocks that have not performed well, irrespective of the losses, in order to secure funds before the break.
The trading week will be short, with markets closing on Wednesday for Independence Day and Thursday marking the final trading day before the Eid holidays.
Investors were initially hopeful that stock prices would rise ahead of the break, but with those expectations unmet, many are opting to liquidate their holdings quickly.
Regel Hossain, a trader at Wang Fu Securities, explains that for smaller investors needing cash, such as those requiring 10,000 to 20,000 taka, the transaction process is quicker, with the funds reaching their bank accounts within a day of selling shares.
However, larger investors seeking substantial sums may need up to two business days to complete their transactions.
In this context, large-scale investors are moving funds to their banks ahead of the holidays, while smaller investors who sold stocks on Monday will likely see their cash on Thursday.
Those with urgent cash needs have been liquidating their stock holdings since the 15th of Ramadan to meet their financial requirements.
Mizanur Rahman, president of the Shareholders’ Unity Council, noted that the pressure to sell shares ahead of Eid is a recurring phenomenon.
Many investors are hoping to capitalise on price increases for quick profits, but often find themselves forced to sell at a loss when prices fail to rise, he added.
He further explained that the market's current state has not been conducive to significant profits, as daily trading volumes rarely exceed 500 crore taka.
Moreover, since the introduction of the new commission structure in the market, there has been minimal growth in both market indices and trading volumes.
As a result, investors are reluctantly selling shares at a loss to secure funds for the holidays.
Between 16-24 March, the market saw seven trading days, with the DSEX index falling on five occasions and rising on only two.
Over the course of those five days, the index dropped by 48 points, while the remaining two days saw a modest increase of just 17 points.
