DSE sees 37% drop in turnover while stocks rise

Stocks in Bangladesh yesterday resumed their gaining streak after stumbling the day before while turnover of the country's premier bourse dropped by around 37 per cent.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose by 7 points, or 0.11 per cent, to end the day at 6,265 points.

Meanwhile, the DS30, which represents blue-chip stocks, fell 0.08 per cent to 2,208 points while the DSES, an index comprised of shariah-compliant companies, edged up 0.02 per cent to 1,367 points.

Investors remain pessimistic about the future of the market and so, most stocks are struggling to get buyers even though the index rose slightly, according to a stockbroker.

If institutional investors return, then general investors would regain their confidence, he said, adding that most buyers active at present are big individual investors who prefer speculative stocks.

Turnover, a measure of the total value of stocks traded, dropped 37 per cent to Tk 590 crore while it was Tk 934 crore the previous day.

Among the traded companies, 76 advanced, 100 declined and 184 remained unchanged.

Dhaka stocks bounced back after a dull session of panic sales due to the hike in gas prices, International Leasing Securities said in its daily market review.

On the other hand, optimistic investors went into buying mode, especially in the IT, general insurance and travel sectors, as the market witnessed a moderate fall on the previous day.

Following the previous session, the market opened on a downward movement as it observed some sale pressure in the morning session.

Later on, the market returned to the green thanks to a buying spree among opportunistic investors that took position in stocks with lucrative prices, it added.

Among the sectors, IT advanced 3.2 per cent, general insurance increased 2.7 per cent and travel rose 1.5 per cent while cement dropped 1.1 per cent, jute fell 0.9 per cent and tannery edged down 0.4 per cent.

Investor activity was mostly focused on the IT sector, which captured 23 per cent of the day's total turnover. General insurance came in second with 10.5 per cent while pharmaceuticals placed third with 10.1 per cent.

IT Consultants posted the highest appreciation, rising 10 per cent, while Dhaka Insurance surged 9.93 per cent. Similarly, Union Insurance advanced 9.33 per cent while Gemini Sea Foods and City General Insurance gained more than 8 per cent each.

Islami Bank suffered the steepest fall, sliding down 2.63 per cent. Likewise, Bangladesh Shipping Corporation dropped 1.83 per cent while Malek Spinning Mills and Hwa Well Textiles also fell by more than 1.70 per cent each.

Genex Infosys was the most traded stock on the day with shares worth Tk 49 crore changing hands. Aamra Networks, Bashundhara Paper Mills, Bangladesh Shipping Corporation, and IT Consultants also saw significant transactions.

The Caspi, the all-share price index of the Chittagong Stock Exchange (CSE), fell 8 points, or 0.04 per cent, to end the day at 18,476 points.

Of the securities traded, 46 advanced, 61 declined, and 89 did not show any price movement.

Turnover at the CSE dropped 36 per cent to Tk 11.44 crore while it was Tk 17.90 crore the previous day.