DSE turnover drops for new circuit breaker

There were no buyers for many stocks as apprehensions prevailed over further decline, resulting in the fall of the turnover

Turnover at Dhaka Stock Exchange (DSE) dropped 23 per cent yesterday as several stocks failed to attract buyers with the circuit breaker's lower limit fixed at 2 per cent. 

The turnover plunged to Tk 637 crore from the previous day's Tk 836 crore.

Meanwhile, the DSEX, the benchmark index of the DSE, rose 19 points, or 0.06 per cent, to 6,392.

Market analysts said there were no buyers for many stocks as apprehensions prevailed over further decline, resulting in the fall of the turnover.

The lower limit of the circuit breaker being recently fixed at 2 per cent induced this fear, they added.

The Bangladesh Securities and Exchange Commission (BSEC) set the lower limit of the circuit breaker at 2 per cent last week, meaning no stock would be allowed to drop more than 2 per cent in a day.

Stocks inched up amid cautious trading and investors are very concerned over an adverse situation in the market due to the deterioration of the exchange rate and rising interest rate, said International Leasing Securities in its daily market review.

Some of the investors preferred booking profits generated in a surge over the past three days, it said.

Among the sectors, that of general insurance soared 3.9 per cent and banking rose 0.3 per cent.

As per the turnover, investors' activities were mostly concentrated on pharmaceuticals and chemicals (19.4 per cent), miscellaneous (11.6 per cent) and textile (9.7 per cent) sectors.

At the DSE, 137 stocks advanced, 195 declined and 43 remained unchanged.

Sonar Bangla Insurance topped the gainers' list, rising 9.93 per cent. Rahima Food Corporation, Islami Insurance Bangladesh, Sonargaon Textiles and City General Insurance Company were also in the list.

Provati Insurance Company shed the most, dropping 5.84 per cent. VFS Thread Dyeing, Golden Harvest Agro Industries, Bangas and Bangladesh Shipping Corporation were in the list of those suffering losses the most.

Beximco became the stock to be traded the most, with shares worth Tk 51 crore changing hands, followed by Orion Pharm, Fu Wang Food, GSP Finance Company (Bangladesh), and Beximco Pharmaceuticals.

Chittagong Stock Exchange (CSE), however, dropped yesterday. The CASPI, the index of the port city bourse, fell 35 points, or 0.18 per cent, to 18,667.

Among the 279 stocks to undergo trade, 86 advanced, 162 fell and 31 remained the same.