Stock turnover dips to 7-month low

Turnover at Dhaka Stock Exchange (DSE) dropped to a seven-month low yesterday as investor participation fell in the face of declining market value.

"Most investors have adopted a wait-and-see approach as the market is in a downward trend," said a stock broker.

"So, movement of the market's prime index and turnover remain sluggish," he added.

The DSE registered a turnover of Tk 1,068 crore yesterday, down 7 per cent from Tk 1,154 crore the day before.

However, the DSEX, the benchmark index of the Dhaka bourse, rose 8 points to 6,906.

At the DSE, 131 stocks advanced, 195 declined and 49 remained unchanged.

"If the index and turnover start to rise now, then investors will regain their confidence and the market will bounce back," said the stock broker.

Among the major sectors, the miscellaneous, cement and ceramics sectors experienced price appreciations while life insurance, travel and leisure, and non-bank financial institution sectors faced corrections.

Beximco contributed the most to the index with five points while British American Tobacco Bangladesh, LafargeHolcim Bangladesh and NRB Commercial Bank collectively added the rest.

The prime index of the DSE has entered an upward trend after experiencing a bearish streak for the last four sessions even though most investors exhibited a profit booking attitude and abstained from making purchases amid the lack of a clear market direction, according to International Leasing Securities.

"Notable price correction in recent periods has lured some investors to take positions in a few scripts at lucrative price levels," the stock brokerage said in its daily market review.

Price appreciation in the miscellaneous, cement and ceramic sectors helped spur the market indices even though participation dropped as investors remain watchful, it added.

Aamra Networks topped the gainers' list, rising 9.28 per cent, followed by Alltex Industry, NRB Commercial Bank, Salvo Chemical Industry and Shinepukur Ceramics.

Stocks of Beximco were traded the most, worth Tk 99 crore, followed by NRB Commercial Bank, British American Tobacco Bangladesh, LafargeHolcim Bangladesh and Orion Pharma.

Quasem Industries shed the most, dropping 6.83 per cent, followed by Prime Textile Spinning Mills, Zaheen Spinning, First Finance and Bangladesh Monospool Paper Manufacturing Company.

The Chattogram bourse also rose yesterday as the CASPI, the main index of Chittagong Stock Exchange (CSE), grew by 10 points, or 0.05 per cent, to 20,197.

Among 274 stocks to undergo trade, 95 rose, 147 fell and 32 remained unchanged.