The Financial Express
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DSE daily turnover hits fresh 13-yr low

Virus fears, ‘floor price’ make investors nervous

| Updated: June 21, 2020 18:21:04

Investors react while monitoring stock price movements on computer screens at a brockerage house in the capital city — FE/Files Investors react while monitoring stock price movements on computer screens at a brockerage house in the capital city — FE/Files

The daily turnover on the Dhaka Stock Exchange (DSE) tumbled to a fresh 13-year low on Sunday, as the growing virus fears and the ‘floor price’ system kept the investors on the sidelines.

The day’s turnover, a crucial indicator of the market, clocked in at only Tk 386 million on the country’s premier bourse, down by 44 per cent from the previous day’s transactions of Tk 696 million.

This marked another lowest single-day turnover since April 2007, when the transactions totalled Tk 376 million. For the first time in 13 years, the DSE daily turnover plunged to Tk 430 million on June 04, 2020.

Sunday's daily turnover on the DSE remained below Tk 1.0 billion-mark for the past nine consecutive sessions.

However, DSEX, the key index of the main bourse, went up slightly by 2.41 points or 0.06 per cent to settle at 3,962 during the trading session, the duration of which has been cut by one hour from the regular four hours recently due to the ongoing Covid-19 pandemic.

The DSE core index has been hovering between 3,950 and 3,970 points for the past 14 sessions as most of the sellers find almost no buyers due to the floor price limitation and the worsening virus situation.

Market operators said the worsening Covid-19 situation has made the market almost buyer-less in recent weeks as the outbreak is going to put a long-lasting impact on the country’s overall economy.

“The market remained at a standstill as the pandemic situation is not improving and there is no positive signal for the capital market investors in the proposed budget,” said a merchant banker.

Most of the shares remained stuck at the trading floor.

Of the issues traded, 214 remained unchanged while only 17 issues advanced and 14 declined on the DSE floor.

Two other indices also edged up. Of them, DS30 index, comprising blue chips, advanced 1.40 points to finish at 1,326 and Shariah index saw a fractional gain of 0.34 point to close at 918.

A total of 10,530 trades were executed in the day’s session with a volume of 18.09 million shares and mutual fund units.

Linde Bangladesh topped the turnover chart with shares worth Tk 30 million changing hands, followed by Central Pharma, Beximco Pharma, Reckitt Benckisher and Bangladesh Submarine Cable Company.

Eastern Lubricants was the day’s best performer for the third straight day, posting a gain of 5.84 per cent, while ICB Employees Provident Mutual Fund One was the worst loser, losing 4.61 per cent.

However, Chittagong Stock Exchange edged lower with its All Shares Price Index (CASPI) losing 3.38 points to close at 11,250 and the Selective Categories Index (CSCX) shedding 1.88 points to finish at 6,816.

Of the issues traded, eight gained, nine declined and 74 remained unchanged on the CSE.

The port city bourse traded 3.38 million shares and mutual fund units worth Tk 92 million in turnovers.


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