DSE transaction dips below Tk 6.0 billion-mark

Dhaka,  Wed,  28 June 2017
Published : 14 May 2017, 21:00:16
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DSE transaction dips below Tk 6.0 billion-mark

DSEX sheds 85 points in six straight sessions
FE Report


Turnover on the Dhaka Stock Exchange (DSE) dipped below Tk 6.0 billion-mark Sunday once again as most of the investors were reluctant to take fresh exposure in the market.

Turnover, the crucial indicator of the market, came down to Tk 5.50 billion which was 20 per cent lower than the previous session's Tk 6.87 billion.

It was also three weeks' lowest single-day transaction since April 25, this year when the turnover totalled Tk 5.0 billion.

Market insiders said the ongoing pessimism kept investors mostly inactive, bringing the turnover to below Tk 6.0 billion-mark while some were selling of shares mostly from bank and NBFI and power sectors, dragging down the market for the six straight sessions.

"Bank stocks continued to fall amid concern over amendment of Bank Companies Act 1991 and its impact on the banking sector while upcoming national budget and holy month of Ramadan kept most of the investors watchful," said an analyst at a leading brokerage firm.

He noted that historical trend has shown that before a budget announcement, many investors prefer to book profit to avoid unforeseen negative impact of new budget.

The market started with a downward trend which continued till end of the session with no sign of reversal, finally ended 36 points lower.

DSEX, the prime index of the DSE, finished at 5,460, losing 36.13 points or 0.65 per cent over the previous session. DSEX lost about 85 points in the past six consecutive sessions.

International Leasing Securities, a stockbroker, said, "The bearish streak extended in the premier bourse for the six consecutive sessions amid investors' shaky confidence".

The stockbroker noted that prolonged bearish vibe in the market kept the investors worried as well as prompted them to go for selling offs to avoid further losses on their portfolio while some others adopted 'wait-and-see' approach.  

"Selling of shares mostly from textile, financial institution and bank sectors contributed to the fall in indices. Some investors preferred sideline which lessened total market activities by 20 per cent over last session," the stockbroker added.

The two other indices also closed lower. The DS30 comprising blue chips fell 6.0 points or 0.30 per cent to finish at 2,018. The DSE Shariah Index (DSES) lost 5.16 points or 0.41 per cent to settle at 1268.

Pharmaceuticals sector emerged as turnover leader, grabbing 16 per cent of the day's total turnover, closely followed by textile 15 per cent and fuel and power 14 per cent.

IDLC Investments, a merchant bank, said, "Investors were net sellers in all the cap classes, with sell pressure being intensive in small-cap issues".

The large-cap sectors showed mostly negative performances with bank sector facing the highest correction of 1.21 per cent, followed by non-bank financial institutions with 0.93 per cent, fuel and power 0.49 per cent, engineering 0.48 per cent and telecommunication 0.22 per cent.

Only food and allied and pharmaceuticals sectors managed to close almost flat, gaining 0.06 per cent and 0.04 per cent respectively.

Losers took a strong lead over the gainers, as prices of 205 securities declined, 84 advanced and 37 remained unchanged out of the 326 issues that were traded on the DSE floor.

A total number of 0.105 million trades were executed in the day's trading session with a trading volume of 157.68 million securities.

The port city bourse, the Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index - CSCX - losing nearly 67 points to settle at 10,251 points.

Losers beat gainers as 158 issues closed lower, 50 closed higher and 19 remained unchanged on the CSE.

The port city bourse traded 9.80 million shares and mutual fund units' worth over Tk 291 million in turnover.

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