Turnover in the Dhaka Stock Exchange (DSE) fell to a 14-month low Thursday as most of the investors were reluctant to make fresh investment following introduction of a new trading system.
The premier bourse introduced the new and fast automated trading system Thursday for ensuring smooth share transactions as well as for mitigating some existing problems.
NASDAQ OMX, the world's largest exchange company based in the US, provided the main part-matching engine-while FlexTrade Systems provided the order management system at the brokers' end.
The daily turnover plunged 68 per cent from that of the last trading day to Tk 1.36 billion. It was the lowest turnover since October 20, 2013 when the figure stood at Tk 1.10 billion.
The highest-ever turnover at the DSE was recorded at Tk 32.49 billion on December 5, 2010, when its general index also hit a record high at 8,918 points.
Along with turnover, DSEX, the prime index of the DSE, fell marginally by 10.69 points or 0.21 per cent to close at 4,933.03 points.
Analysts said perhaps the investors were yet to adopt to the new trading system which was introduced on Thursday at the DSE.
"Turnover fell substantially as most of the investors tried to understand the new trading system," said Akter H Sannamat, managing director of Union Capital.
However, he said there was nothing to worry as the new trading system is upgraded one with the support of world-class technology which will benefit the investors.
"A separate trading board for equity and debt securities can be created in the new system and the market's depth will be increased in near future," said Mr Sannatmat, also vice president of the Bangladesh Merchant Bankers Association (BMBA).
It will also resolve the problems of odd lot transactions, manual input in fixing the ranges of circuit breaker for individual equity and transaction of listed bonds, said Mr Sannamat.
An investor will be able to buy or sell only one share or unit with the new system, he said adding, "The problem will be resolved within a day or two," he hoped.
The International Leasing Securities said: "The overall investors' participation plummeted by 68 per cent to below Tk 1.50 billion level due to the introduction of the new trading system as most of the investors have yet to familiarise them with the software interface".
The IDLC Investments said: "The first day of the new trading platform ended with other flat-ends, squeezing participation significantly as the market tried to adapt".
Consequently, the total turnover nosedived into 14-month lowest of Tk 1.36 billion, putting the overall market in a depressed mood, said the merchant bank.
The BRAC EPL, a stock brokerage said that the turnover suffered heavily as the new trading system would require some time to settle in.
The LankaBangla Securities said: "Stocks were traded on per unit basis as the DSE introduced an auto adjustable trading system with a view to accelerating trading activities by resolving existing complexities".
This trading system allows investors to buy or sell only one share or unit; there will be no market lot of shares, said the stock broker.
"As market commenced under this new trading system, investors were watchful about stock price movement during the trading session," said the stock broker.
The market turnover bounced off the doldrums participation as it recorded turnover value of only Tk 1.36 billion, the stock broker added.
Most of the investors refrained from trading Thursday, the first day of newly introduced trading system as purchasing power of investors was not displayed due to a minor mistake, said a DSE official.
However, he said it will be displayed from Sunday (December 14) on the screen which will help the investors to place buying and selling order.
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