Most DSE stocks struggle to get buyers

Stocks in Bangladesh continued to drop for a fourth consecutive day yesterday as apprehensive investors continued to sell shares while most stocks were left without a buyer for most of the time. 

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), edged down 12 points, or 0.19 per cent, to 6,400.

Turnover at the DSE slid 23 per cent to Tk 1,005 crore from what was the previous day.

The DS30, the index comprising blue-chip companies, and the DSES, the Shariah-compliant index, both remained flat at their previous day's 2,277 and 1,406 respectively.

At the DSE, 220 securities, or 60 per cent of the total listed issues, remained the same due to having a low number of buyers for most of the trading time. Another 49 issues advanced, and 100 declined at the bourse.

Most stocks have become illiquid following the launching of floor prices by the BSEC, as investors believe the stock prices deserve to be lower, said a top official of a merchant bank.

In July, the Bangladesh Securities and Exchange Commission (BSEC) set the floor price of every stock to halt the free fall of the market indices amidst global economic uncertainties that have impacted Bangladesh's economic indicators in the last couple of months.

It said the floor price would be the average of the closing prices of the five days till July 28. Looks like the floor price saved the stock index from a massive fall but this will have a negative impact on the market in the long run, he said.

Big investors, especially foreign investors, do not like a stock market where the regulator intervenes in price movements, he added.

If the stock index could fall freely, it would have gone up with investments of new investors after some time, he added.

Dhaka stocks extended a losing streak to a fourth session amidst macroeconomic worries, said International Leasing Securities in its daily market review.

"The jittery investors went on a sell-off to exit from the market for a while now as they fear deepening challenges of inflation riding on the price hike of daily necessities including foods," it said.

The apprehensive investors preferred to hold onto cash to meet daily expenses amid rising inflation and future uncertainties, it added.

Among the sectors, jute rose 3.3 per cent, food 0.5 per cent and cement 0.2 per cent sectors whereas IT dropped 2.3 per cent and paper 2.1 per cent.

Based on the turnover, investors' focus was mainly on pharmaceuticals (22.3 per cent), engineering (16.5 per cent) and miscellaneous (12.4 per cent) sectors.

The JMI Syringes and Medical Devices topped the gainers' list, advancing 10 per cent. Navana Pharmaceuticals, Anwar Galvanizing, Apex Foods, and Olympic Industries also rose over 7 per cent.

The Peninsula Chittagong suffered the highest correction, sliding almost 13 per cent. BDCOM Online, Navana CNG, Paper Processing and Packaging, and Bangladesh Industrial Finance declined by more than 8 per cent.

The Caspi, the all-share price index of Chittagong Stock Exchange, decreased 41 points, or 0.21 per cent, to end at 18,854.

Of the issues that were traded on the bourse in the port city, 36 advanced, 80 declined, and 84 did not show any price movement.