DSE turnover lowest in two and a half years

Turnover at Dhaka Stock Exchange (DSE) yesterday plunged to its lowest in two and a half years.

Meanwhile, the DSEX, the benchmark index of the DSE, dropped 17 points, or 0.28 per cent, to 6,177 points.

The DS30, the blue-chip index, fell 0.09 per cent to 2,191 points while the DSES, the index that represents Shariah-based companies, up 0.33 per cent to 1,351.

Turnover, an important indicator of the market, decreased 18 per cent to Tk 145 crore from that on the previous day.

The last time it was in this range was on July 7, 2020 when turnover was recorded at Tk 138 crore.

Among the companies to undergo trade, 7 advanced, 158 declined and 164 remained the same.

The Dhaka stocks observed another downbeat session amid low turnover and the market started with a downward movement as investors went on a selling spree apprehending a floor price withdrawal, said International Leasing Securities in its daily market review.

The investors liquidated their stocks of almost all sectors, mainly IT, paper, service and ceramics to stop further deterioration of their portfolio values, it added.

All the sectors witnessed a price correction, except for that of banking that rose 0.1 per cent. IT dropped 2.5 per cent, paper 1.5 per cent and service 1.3 per cent.

Based on the turnover, investors' activities were mostly centred on pharmaceuticals (29 per cent), engineering (9.1 per cent) and IT (8 per cent) sectors.

Islami Commercial Insurance posted the highest appreciation, rising 9.70 per cent. Bangladesh Welding Electrodes also rose 2.55 per cent while Shahjalal Islami Bank 1.06 per cent.

Orion Infusion suffered the biggest fall, by 7.49 per cent. Bangladesh Monospool Paper Manufacturing, Monno Ceramic Industries and Kohinoor Chemical Company also dropped by over 5 per cent each.

Stock investors are worried over what the country's economic condition will be in the coming months though remittance and export earnings rose in recent times, said a top official of a merchant bank.

They fear that the performance of listed companies may fall due to a rise in the prices of raw materials and the exchange rate of the US dollar with taka, he said.

A crisis of confidence prevails among all investors, he added.

Orion Infusion was the stock to be traded the most on the day with shares worth Tk 9 crore changing hands. Monno Ceramic Industries, Intraco Refueling Station and Anwar Galvanizing also saw a significant number of transactions.

The Caspi, the all-share price index of Chittagong Stock Exchange, decreased 34 points, or 0.19 per cent, to end the day at 18,258 points.

Of the securities that underwent transactions, 7 advanced, 51 declined, and 89 did not show any price movement.