Bangladesh
2 years ago

DSE turnover dips below Tk 5.0b mark

Key index shrinks to one month low on selling binge

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The market extended losses on Wednesday, with turnover dipping below Tk 5.0 billion-mark, as investors were reluctant to make fresh investments in stocks amid persistent volatility.

Market insiders said the looming uncertainty over the global economy and the commodity market volatility continued to hurt investors' sentiment.

Turnover, the crucial indicator of the market, came down to Tk 4.90 billion, which was 15 per cent lower than the previous day's mark of Tk 5.75 billion.

It was also the lowest single-day transaction in one-year since April 11, 2021 when turnover was recorded at Tk 4.56 billion.

DSEX, the core index of the Dhaka Stock Exchange, went down by 31.81 points or 0.47 per cent to settle at one-month low at 6,662. DSEX lost over 109 points in the past three straight sessions.

The recent regulatory moves failed to stop the market fall as the ongoing pessimism kept investors mostly inactive amid a fear of global economic turmoil due to the ongoing Russia-Ukraine war, said a merchant banker.

"The institutional investors remained cautious to put fresh bets on stocks while many of them were not interested to selling shares at low prices, leading to low turnover," he said.

"Due to the limited trading window during Ramadan, trading activity slowed down and turnover dipped to one-year low," according to EBL Securities.

The liquidity shortage of the capital market might exacerbate further this month amid growing consumption in ongoing Holy Ramadan and the upcoming spending spree centering Eid festival, said the stockbroker.

"The investors lowered their participation in the market due to the lack of the clear direction," said International Leasing Securities, in its daily market analysis.

Two other indices also ended lower with the DSE 30 Index, comprising blue chips, losing 5.58 points to finish at 2,459 and the DSE Shariah Index (DSES) fell 4.55 points to close at 1,456.

All major sectors suffered losses except cement which gained 1.20 per cent. The financial institutions sector saw the highest corrections, losing 1.20 per cent, followed by telecom with 1.0 per cent, food 0.60 per cent, power 0.40 per cent, banking 0.40 per cent and pharma 0.10 per cent.

Prices of more than 78 per cent traded issues fell on the prime bourse, as out of 375 issued traded, 293 declined, 44 advanced and 38 remained unchanged on the DSE trading floor.

LafargeHolcim Bangladesh topped the turnover list with shares worth Tk 406 million changing hands, closely followed by Beximco, Kattali Textile, Bangladesh Building Systems and BBS Cables.

The newly listed JMI Hospital Requisite Manufacturing continued to top the gainer list for the fourth straight session, posting a 9.93 per cent gain, while Midas Financing was the day's worst loser, losing 2.0 per cent.

The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -losing 79 points to settle at 19,567 and the Selective Categories Index - CSCX - shedding 47 points to close at 11,738.

Of the issues traded, 196 declined, 57 advanced and 20 issues remained unchanged on the CSE.

The port-city bourse traded 6.20 million shares and mutual fund units with turnover value worth Tk 225 million.

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