DSE turnover nosedives to seven-month low

Stocks nosedived yesterday when the market's turnover reached a seven-month low due to a confidence crisis among investors.

DSEX, the Dhaka Stock Exchange's (DSE) benchmark index, dropped 90.77 points, or 1.65 per cent, to 5,385.21.

Turnover, an important indicator of the stock market, was downed by 32 per cent, to Tk 467 crore. The last time it was so low was on July 29, 2020 when turnover reached Tk 399 crore.

The index has been overcast for the last couple of weeks, so many stock prices were a source of losses for investors which ultimately had an impact on confidence, said a stock broker.

Investors have their money stuck as they can not sell shares without incurring losses, he said.

So many investors are silent now, he said, adding that investors' funds were mostly stuck with stocks of Beximco Pharmaceuticals, Robi Axiata and LankaBangla Finance.

If investors hold stocks of companies with good performance records, they will not end up losing out in the long run, so they should not go for making sales, he added.

Companies whose performances are low might be the cause of losses anytime, he added.

"The index has been falling for the last few weeks, which badly downed our portfolio," said stock investor Abdur Raheem, adding, "Investors are in panic."

Panic is contagious, so it further intensified the market fall, he said, adding that institutional investors need to invest more in the market to keep investors' confidence alive.

The turnover's fall proves that institutional investors are now not active in the market, he added.

In the DSE, 23 stocks rose, 219 declined and 101 remained unchanged.

Alhaj Textile Mills topped the gainers' list rising 10 per cent, followed by Intech, Walton Hi-tech Industries, Unilever Consumer Care and the Mithun Knitting and Dyeing.

Beximco topped the turnover list with trade worth Tk 105 crore followed by Robi Axiata, British American Tobacco Bangladesh, LankaBangla Finance and Beximco Pharmaceuticals.

Prime Finance First Mutual Fund shed the most dropping 6.50 per cent followed by Mir Akhter Hossain, Robi Axiata, Jute Spinners and Sandhani Life Insurance Company.

Meanwhile the port city bourse also dropped. The CASPI, the Chittagong Stock Exchange's (CSE) general index, fell 256 points, or 1.61 per cent, to 15,564.99. Among 186 stocks to witness trade, 26 rose, 122 dropped and 38 remained the same.