Stocks snap losing streak
The indices of Dhaka Stock Exchange (DSE) rose yesterday snapping a five-day falling streak though turnover remained below the Tk 300 crore level.
This means the index rose riding on the rise of some companies' stocks while others saw almost no trade.
The DSEX, the benchmark index of the top bourse in Bangladesh, gained 17 points, or 0.27 per cent, to reach 6,199.
The DS30, the blue-chip index, gained 0.18 per cent to reach 2,218 while the DSES, the Shariah-compliant index, advanced 0.41 per cent to 1,356.
Though the index rose, the losers took a lead over the gainers as out of a total of 310 issues to undergo trade, 98 declined, 56 advanced and 156 remained unchanged.
As more shares had dropped, it is clear that the stock market remains gloomy but the index rose mainly due to the presence of the floor price, said a stock broker
As more shares had dropped, it is clear that the stock market remains gloomy but the index rose mainly due to the presence of the floor price, said a stock broker.
At the end of July last year, the Bangladesh Securities and Exchange Commission (BSEC) set the floor price of every stock to halt the free fall of the market indices.
It was the average of the closing prices on July 28, 2022 and the preceding four days.
Though the BSEC lifted the floor price for 169 companies last December, it has set the circuit breaker in a way such that the companies' stock prices would now be allowed to drop more than 1 per cent based on the previous day's closing price.
Actually, the index is not showing the real gloomy picture of the market, he added.
Turnover, a key indicator of the market, rose about 13 per cent to Tk 261 crore.
All the sectors achieved price appreciation, except for jute, that dropped 0.7 per cent, and general insurance, which fell 0.3 per cent. IT rose 4.9 per cent and services advanced 2.5 per cent.
The investors' activities were mainly focused on the IT sector, capturing 17.8 per cent of the day's total turnover, followed by miscellaneous (12.6 per cent) and pharmaceuticals (12.6 per cent) sectors.
Metro Spinning secured the highest gain with an increase of 9.8 per cent. Aamra Networks, Gemini Sea Food, Orion Infusion and ADN Telecom were among the top gainers, advancing more than 8 per cent respectively.
Sea Pearl Cox's Bazar Beach Resort & Spa lost the most, shedding 1.2 per cent. BDCOM Online, Sonali Aansh Industries, Zeal Bangla Sugar Mills and Aramit were also in the list of those suffering losses the most.
Bangladesh Shipping Corporation was the most-traded stock, with issues worth Tk 28 crore changing hands. Genex Infosys, Sea Pearl Cox's Bazar Beach Resort & Spa, ADN Telecom and Shinepukur Ceramics also registered significant turnovers.
The Caspi, the all-share price index of Chittagong Stock Exchange, went up 22 points, or 0.12 per cent, to close at 18,298.
Of the issues, 29 rose, 40 retreated and 70 did not see any price swings. Turnover of the port city bourse increased 99 per cent to Tk 9.25 crore.