DSE sees lowest turnover in 20 months

Turnover at the Dhaka Stock Exchange (DSE) hit a 20-month low yesterday as investors are employing a cautious approach due to the ongoing economic situation, according to market analysts.

The DSEX, the benchmark index of the Dhaka bourse, fell 20 points, or 0.33 per cent, to 6,224.

The DS30, the blue-chip index, dropped 0.41 per cent to 2,207 while the DSES, the index that represents shariah-based companies, slipped down 0.48 per cent to 1,363.

Turnover, an important indicator of the stock market, plunged 35 per cent to Tk 313 crore, which was the lowest on record since April 5, 2021, when it was Tk 236 crore.

At the DSE, 22 securities advanced, 64 declined, and 214 did not see any movement.

Investors are suffering from a lack of confidence and so, their participation fell while most were in selling mood, said a stockbroker.

The country's macroeconomic indicators are currently in a challenging situation as the balance of payments has fallen into deficit, forex reserves are depleted, taka depreciated against the US greenback, and export and remittance had fallen.

Meanwhile, the performances of the listed companies have dropped too.

So, rational investors were in a selling trend as the stock market index is falling, he said, adding, the investors could not sell shares at their expected level due to the floor price.

A merchant banker said the political situation is likely to be unstable ahead of the upcoming election and so, institutional investors are being cautious about investing.

Foreign investors are also in a selling trend amid fear of a further slide in the local currency against the US greenback.

So, the stock index is falling along with the turnover, he added.

Kay & Que topped the gainers' list, advancing 6.7 per cent. Olympic Industries, Advent Pharmaceuticals, aamra networks, and ADN Telecom also increased more than 3 per cent.

Kohinoor Chemicals suffered the sharpest fall, giving up 13 per cent. Chartered Life Insurance, eGeneration, Bashundhara Paper Mills, and Navana Pharmaceuticals were also among the major losers.

Stocks of aamra networks traded the most with Tk 18 crore while Bashundhara Paper Mills, Genex Infosys, Chartered Life Insurance, and Sea Pearl Beach Resort & Spa also took place in the top turnover chart.

The stocks slipped into the red after a three-day break as the investors were mostly cautious amid a lack of clear direction of the future market movement ahead of the election year, said International Leasing Securities said in its daily market review.

Among all other sectors, food and allied advanced 0.3 per cent and financial institution rose 0.2 per cent whereas paper dropped 4.4 per cent, travel fell 2.6 per cent and jute decreased 2.1 per cent.

The Caspi, the all-share price index of the Chittagong Stock Exchange, dropped 25 points, or 0.13 per cent, to close at 18,394.

Of the issues traded at the port city bourse, 24 advanced, 35 declined, and 79 did not show any price movement.