All DSE indices fall for second day

All three indexes of the Dhaka Stock Exchange (DSE) fell for the second consecutive day yesterday, albeit slightly, a day after the regulator brought back the floor price for 169 companies.

On Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) reinstated the floor price for the listed firms, less than three months after they were lifted.

In July last year, the BSEC set the floor price of every stock to halt the free fall of the market amid global economic uncertainties. The floor price was the average of the closing prices on July 28 of the year and the preceding four days.

In December, the commission lifted the regulatory measure for 169 companies to see how the market responds. Many of the issues have fallen since then.

Most analysts and intermediaries have, however, been against the floor since it prevents the market from operating on its own.

The DSEX, the benchmark index of the top bourse in Bangladesh, slipped 0.02 per cent, to close at 6,213 yesterday.

The DS30, the blue-chip index, edged down 0.09 per cent to 2,216 while the DSES, the shariah-compliant index, dropped 0.03 per cent to 1,357.

Turnover, a key indicator of the market, fell to Tk 427 crore, a decrease of 5.5 per cent from a day earlier. Of the securities, 72 advanced, 88 declined and 149 did not show any price movement.

Shares on the DSE edged flat after a bumpy ride as most investors followed a cautious stance amid the reintroduction of the floor price, said International Leasing Securities Ltd in its daily market analysis. 

"The investors remained shaky and followed a wait-and-see approach due to a lack of clear direction of the market as most of the stocks got stuck on the floor prices that caused lower turnover."

Among the sectors, the IT sector rose 3.5 per cent and the life insurance sector was up 1.6 per cent. The general insurance sector fell 0.9 per cent.

Zeal Bangla Sugar Mills made the highest gain with an increase of 10 per cent. ADN Telecom, Shyampur Sugar Mills and Bangladesh General Insurance Company rose more than 9 per cent.

Hakkani Pulp & Paper Mills and Meghna Pet Industries were up more than 8 per cent.

International Leasing & Financial Services was the highest loser, shedding 9.6 per cent. Union Capital gave up 9.091 per cent.

Premier Leasing & Finance, Islami Commercial Insurance Company, and FAS Finance & Investment were also among the major losers. ADN Telecom was the most-traded stock with its issues worth Tk 35 crore transacting.

Genex Infosys, Sea Pearl Beach Resort & Spa, Delta Life Insurance Company, and Aamra Networks registered significant turnover as well.

The Caspi, the all-share price index of the Chittagong Stock Exchange, lost 53 points, or 0.29 per cent, to close at 18,282.

Among the issues, 28 rose, 37 retreated and 43 did not see any price swing. Turnover dipped more than 50 per cent to Tk 8.15 crore.

In the week to Thursday, the DSEX added 8.6 points, the DS30 gained 1.4 points and the DSES lost 5 points, said International Leasing Securities Ltd. The average turnover surged 31.36 per cent to Tk 358 crore.

During the week, the IT sector slipped 7.2 per cent and the life insurance sector was down 3.6 per cent. The jute sector was down 2.9 per cent and the travel sector dipped 2.7 per cent

Among the individual stocks, ADN Telecom rose 7.5 per cent last week, Sea Pearl advanced 6.5 per cent and Genex Infosys closed 6.3 per cent higher.