Dhaka stocks, turnover drop despite receding Covid-19

Shares listed on the Dhaka Stock Exchange (DSE) fell yesterday while daily turnover, a key indicator of the market, dropped below Tk 1,000 crore for the first time in about two months.

Although the indices rose when the Omicron variant of Covid-19 was spreading like wildfire earlier this year, shares are on a downward trend despite the decreasing infection rate, according to a stockbroker.

"This ought to be just the opposite. Actually, our stock market is not responding to real reasons for change. Instead, it moves due to the activities of some big investors as the market size is comparatively small."

The DSEX, the benchmark index of the Dhaka bourse, edged down 8 points, or 0.12 per cent, to 6,917.

Turnover fell 20 per cent to Tk 908 crore from Tk 1,140 crore the previous trading session. On January 2, the turnover was Tk 894 crore.

On the DSE, 173 stocks advanced, 154 fell and 49 remained unchanged.

The country's premier bourse plunged for a third consecutive day over Bangladesh Bank's directive that fixed the capital market exposure limit for non-banking financial institutions, International Leasing Securities Ltd said in its daily market review.

"The investors' overall turnover dropped as they abstained from making any new investments amid the lack of a clear market direction."

ADN Telecom topped the gainers' list, rising 10 per cent, followed by Apex Spinning, Meghna Pet Industries, Dragon Sweater and Spinning, and Peninsula Chittagong Hotel.

Beximco Ltd was the most-traded stock with its shares worth Tk 64 crore changing hands.

Orion Pharmaceuticals saw a turnover of Tk 35 crore while Fortune Shoes registered Tk 27 crore, Bangladesh Shipping Corporation witnessed Tk 22 crore, and British American Tobacco recorded Tk 20 crore.

Aramit Cement shed the most, dropping 6.3 per cent. Zeal Bangla Sugar Mills, Samorita Hospitals, Tamijuddin Textiles, and Rangpur Foundry were also among the heavy losers. Among the sectors, IT rose 2.5 per cent, travel and leisure gained 1.7 per cent, and real estate and services increased 1.6 per cent.

The jute sector dropped 3 per cent while paper and printing fell 2.3 per cent, and food and allied lost 0.9 per cent.

The investors' attention was mainly concentrated on pharmaceuticals and chemicals (12.3 per cent), miscellaneous (11.6 per cent), and textile (11.2 per cent).

The Chittagong Stock Exchange (CSE) remained flat as well, as the CASPI, the main index of the port city bourse, was unchanged at 20,231 points.

Among the 304 stocks traded, 136 rose, 132 fell and 36 did not see any price movement.