Stocks back on the uptick after two-day loss
Stocks in Bangladesh yesterday returned to the green after a two-day slip while turnover of the Dhaka Stock Exchange (DSE) also rose.
The DSEX, the benchmark index of the country's premier bourse, added 3.66 points, or 0.059 per cent, to close the day at 6,196 points.
The DS30, representing blue-chip stocks, shed 0.17 per cent to hit 2,206 points while the DSES, an index comprised of shariah-compliant companies, edged up 0.15 per cent to 1,347 points.
Although major indices rose, a confidence crisis prevails as institutional investors are keeping away from the market amid the prevalence of floor prices, a stockbroker said.
By the end of July 2022, the Bangladesh Securities and Exchange Commission had set individual floor prices for each stock to halt the freefall of market indices amid global economic uncertainties.
Although the market regulator later withdrew the floor prices of 169 companies in December, it reintroduced the mechanism earlier this month.
Some individual investors are active in the market but most remain on the sidelines as their funds are tied up in stocks that have prices stuck at low levels, the broker said.
"As the economic situation is not still optimistic and the market remains dry due to the floor price, peoples' participation is not rising," he added.
Turnover of the DSE, a key indicator of trade in the market, rose 40 per cent to Tk 382 crore yesterday while it was Tk 272 crore a day earlier.
Of the securities traded, 80 advanced, 27 declined and 198 remained unchanged.
The stock market regained its gaining streak after two sessions of price correction as the current price level of several scrips from different sectors have attracted investors, International Leasing Securities said in its daily market analysis.
The market started positively but the momentum slowed in later hours.
Besides, market participation increased 40.7 per cent to Tk 382.7 crore compared to the previous session.
Among the sectors, IT rose 3.5 per cent, paper and printing increased 1.4 per cent, and jute advanced 0.8 per cent. Meanwhile, travel and leisure dropped 1.8 per cent, life insurance declined 0.6 per cent, and pharmaceuticals and chemical fell 0.1 per cent.
The investors' attention was mainly focused on the food and allied (17.1 per cent), IT (16.5 per cent), travel and leisure (9.7 per cent), and service and real estate (7.9 per cent) sectors.
The CASPI, the all-share price index of the Chittagong Stock Exchange, declined by 2.23 points, or 0.01 per cent, to 18,277 points.
Of the issues traded, 43 rose, 21 retreated, and 35 saw no price movement.
Turnover of the port city bourse dipped by more than 21 per cent to Tk 5.14 crore compared to Tk 4.22 crore a day earlier.
Comments