DSE’s turnover slips below Tk 300cr again

Foreign investments in stocks

All indices of the Dhaka Stock Exchange (DSE) fell slightly yesterday, extending the loss to the third straight session while turnover dropped below Tk 300 crore. 

The DSEX, the benchmark index of the top bourse in Bangladesh, edged down 0.53 points, or 0.008 per cent, to 6,218.

The DS30, the blue-chip index, went down 0.001 per cent to 2,221 while the DSES, the shariah-compliant index, dropped 0.046 per cent to 1,359.

"The stocks have been suffering for many days mainly due to the confidence crisis among investors and challenges facing the economy of Bangladesh," said a stockbroker.

Similarly, the performance of the listed companies was not encouraging.

Most companies listed on the DSE reported a loss or decline in profit in the first half of the current financial year, owing to sales drop, the significant depreciation of the local currency and higher fuel prices. 

Since most of the stocks are not allowed to fall owing to the floor price, investors have adopted a wait-and-see approach to see what happens once the floor price is lifted fully.

At the end of last July, the Bangladesh Securities and Exchange Commission (BSEC) set the floor price for every stock to halt the free-fall of the market amidst global economic uncertainties. The floor price was the average of the closing prices on July 28 of last year and the preceding four days.

In December, the commission lifted the floor price for 169 companies in order to make the stock market vibrant, out of nearly 400 companies listed. But these stocks can't fall more than 1 per cent in a single day because of a circuit breaker.

Turnover, a key indicator of the market, dropped 21 per cent to Tk 257 crore yesterday. Of the securities, 36 advanced, 120 declined and 152 did not show any price movement.

"The stocks on the DSE edged flat after a bumpy ride as most of the investors followed a cautious stance amid sluggish turnover," said International Leasing Securities Ltd in its daily market review.

The investors remained shaky due to the lack of a clear direction of the market as the regulator is yet to decide on the floor price withdrawal, it said.

Among the sectors, travel rose 1.3 per cent, life insurance advanced 0.7 per cent and services were up 0.5 per cent. The jute sector fell 1 per cent and the general insurance sector dropped 0.6 per cent.

Investors' activities were mainly focused on the pharmaceuticals sector, which captured 18.1 per cent of the day's total turnover, followed by IT (11.3 per cent) and food (10.8 per cent).

Rupali Life Insurance Company made the highest gain with an increase of 5.8 per cent. Popular Life Insurance, Shinepukur Ceramics, Pragati Life Insurance, and Gemini Sea Food were also on the top gainers' list.

Bangladesh General Insurance Company was the worst-performing issue, shedding 7.3 per cent. Bangladesh Lamps, Apex Footwear, Monno Ceramic Industries, and IT Consultants were also among the significant losers.

Shinepukur Ceramics was the most-traded stock with its issues worth Tk 15 crore transacting. Bangladesh Shipping Corporation, Genex Infosys, Olympic Industries, and Sea Pearl Beach Resort & Spa registered significant turnover as well.

The Caspi, the all-share price index of the Chittagong Stock Exchange, inched up 0.28 per cent to close at 18,360.

Of the issues, 24 rose, 64 retreated and 52 did not see any price swing. However, the turnover on the bourse in the port city surged to Tk 46.91 crore.


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