Stock indices see small climb as turnover falls

Major indices of the stock market in Bangladesh rose slightly even though the floor prices of 169 companies were lifted yesterday while turnover of the country's premier bourse in Dhaka fell to a 29-month low.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), edged up 3 points, or 0.05 per cent, to close the day at 6,202 points following six consecutive days of decline.

The DS30, which represents blue-chip companies, added 0.06 per cent to hit 2,194 points while the DSEX, an index that represents shariah-compliant companies, advanced 0.17 per cent to 1,357 points.

Among the traded companies, 52 advanced, 101 declined and 156 remained the same.

Many investors thought the market indices would fall for the lifting of floor prices. However, the indices rose as investors had refused to sell their shares in stocks that were previously stuck at floor prices in wait of better returns, a stockbroker said.

The stock market regulator lifted the floor prices of 169 stocks while imposing a 1 per cent lower circuit breaker effective from Thursday.

The stockbroker went on to say that investors should have patience in selling shares if they invested in good stocks without taking any margin loan.

Turnover, an indicator of the market's liquidity, dropped 31 per cent to Tk 227 crore while it was Tk 333 crore the previous day. This was the lowest daily turnover on record since July 16, 2020, when it stood at Tk 225 crore.

Stocks in Dhaka inched up following a sideways movement as risk-averse investors maintained a "wait and see" approach due to the lack of a clear direction in the market amid the partial withdrawal of floor prices, International Leasing Securities said in its daily market review.

The market had started the day on a downward trend that later bounced back to a middling position that remained until closure, the stockbrokerage added.

Among the sectors, jute rose 4.7 per cent, travel advanced 2.8 per cent and IT gained 1.1 per while tannery dropped 2.1 per cent, ceramic fell 0.3 per cent and bank edged down 0.1 per cent.

Investor activity was mostly focused on the pharmaceutical (18.7 per cent), engineering (15 per cent) and travel (10.1 per cent) sectors.

Islami Commercial Insurance posted the highest appreciation, rising 9.65 per cent, while Union Capital surged 8.9 per cent. Meanwhile, Intraco Refueling Station, Sonali Aansh Industries and Monno Agro & General Machinery each advanced by more than 5 per cent.

Orion Infusion suffered the steepest fall, sliding down by 7.4 per cent. Similarly, Fortune Shoes dropped 4.7 per cent, Coppertech Industries shed 3.9 per cent, and Kohinoor Chemical Industries eroded 2.3 per cent.

Monno Ceramic Industries was the most-traded stock on the day with shares worth Tk 16 crore being transacted. Sea Pearl Beach Resort & Spa, Monno Agro & General Machinery, Bashundhara Paper Mills, and Intraco Refueling Station also saw significant transactions.

The Caspi, the all-share price index of the Chittagong Stock Exchange, rose by 19 points, or 0.10 per cent, to end the day at 18,327 points.

Of the securities traded, 26 advanced, 29 declined, and 79 did not show any price movement.