Stocks turnover plunges to 12-month low

Turnover on the Dhaka Stock Exchange (DSE) fell to its lowest level in the last one year yesterday as shares declined amid persistent selling spree.

Investors, worried about the dragging global uncertainty owing to the Russian-Ukraine war and supply chain disruptions and higher inflation at home, were mostly inactive and maintained their selling spree with a view to cutting losses.

As a result, shares worth only Tk 393 crore changed hands on the premier bourse of Bangladesh on the day, down 25 per cent from the previous session's Tk 529 crore, and the lowest since April 5 of 2021, when it stood at Tk 236 crore.

The DSEX, the benchmark index, shed 30 points, or 0.45 per cent, to close at 6,554. The DS30, which consists of blue-chip stocks, and the DSES, comprising Shariah-based companies, lost 5.45 points and 5.57 points, respectively.

Losers outnumbered gainers 280 to 58, with 41 issues unchanged.

Among the sectors, telecommunication, services and real estate and food and allied sector achieved the highest price appreciation, rising 0.5 per cent, 0.2 per cent, and 0.1 per cent, respectively, said International Leasing Securities Ltd in its daily market analysis.

Shekh Mohammad Rashedul Hasan, managing director of UCB Asset Management, says liquidity flow usually remains robust when cash is cheap owing to lower interest rates.

This was seen during the pandemic-hit 2020 and 2021 when people had little scope to make investments. It was anticipated that the liquidity flow would slow when the economy reopened following the receding of the pandemic.

"Now, the liquidity situation is not as favourable as it was in the last two years. This is cyclical and there is nothing to be worried about."

Hasan is hopeful about an improvement in corporate earnings in the coming quarters that will also pull liquidity to the market.

Paper and printing, ceramic and life insurance sectors suffered the highest price correction, losing 1.7 per cent, 1.4 per cent and 1.3 per cent, respectively.

The investors' attention was mainly concentrated on paper and printing and pharmaceuticals and chemicals.

JMI Hospital Requisite Manufacturing topped the gainers' list with an increase of 9.92 per cent. Meghna Pet Industries, Mercantile Insurance, Northern Insurance, Salvo Chemicals, Pharma Aids, Padma Oil, Khan Brothers PP Woven Bag Industries, Nitol Insurance, Uttara Finance and Investments, and Brac Bank rose between 2 and 4 per cent.

Beximco Pharmaceuticals, Renwick Jajneswar, and BD Finance all shed 2 per cent, the highest decline allowed by the regulator in a single day at the moment.

Apex Spinning, Tamijuddin Textile Mills, Delta Life Insurance Company, Sonali Paper & Board Mills, Bangladesh Monospool Paper Manufacturing, JMI Syringes & Medical Devices, and Shurwid Industries were among the heavy losers.