Risk-aversion keeps stocks stagnant

The market was flat yesterday thanks to investors' risk-aversion approach to see off the Ramadan period.
DGEN, the main gauge of the Dhaka Stock Exchange, finished the day at 4,092.16 points, after dropping 0.12 points, or 0.003 percent.
Turnover, the most vital indicator of the market's vigour, stood at Tk 259 crore, up by 8.68 percent from the previous day.
Investors are observing the market critically, anticipating a bull run after Ramadan to make up for the losses incurred in the last couple of months, market analysts said.
Institutional investors placed new 'buy' orders as inflation trailed off to single digit, the analysts added.
The market started off with flying colours, but selling pressure to make quick cash ahead of Eid cancelled out the gain and sent the index to red.
“The bearish mood is getting in the way of a full-fledged market rally,” stated LankaBangla Securities, adding that the falling inflation and increased liquidity improved the market fundamentals.
A total of 0.79 lakh trades were executed on the Dhaka bourse, with 6.28 crore shares and mutual fund units changing hands.
Of the 270 issues that traded during the day, 135 advanced, 106 declined and 29 remained unchanged.
Among the major sectors, non-bank financial institutions, banks and life insurance declined, by 0.78, 0.59 and 0.43 percent respectively.
Non-life insurance rose by 1.15 percent, followed by textiles, 0.84 percent, power, 0.77 percent, and engineering, 0.55 percent.
Bangladesh Submarine Cable Company was the top traded stock of the day, thanks to its transactions of 26.57 lakh shares worth Tk 22.28 crore, followed by RN Spinning Mills and Jamun Oil Company.
First Bangladesh Fixed Income Fund was the biggest gainer of the day, posting a rise of 6.52 percent.
Conversely, Prime Islami Life Insurance was the day's biggest loser, having slid by 9.29 percent.