The daily trade turnover on Dhaka Stock Exchange (DSE) hit five months' low on Wednesday, as investors remained cautious to inject fresh funds on stocks.
Turnover, a crucial market indicator, stood at Tk 3.68 billion on the country's premier bourse, falling further by 3.0 per cent over the previous day's mark of Tk 3.79 billion.
It was the lowest single-day transaction in the last five months since May 31, when the turnover totalled Tk 3.62 billion.
Market insiders said many investors, fearing political turmoil ahead of the national election, were not confident enough to put in fresh funds on stocks.
Between October 09 and October 22, DSEX, the DSE prime index, eroded more than 204 points or 3.74 per cent to come down to 22 months' low of 5,251 on October 22.
Following the recent sharp fall of index, Bangladesh Securities and Exchange Commission (BSEC) held an urgent meeting on Tuesday to analyse the reasons behind the situation.
After the meeting, BSEC urged the investors to remain calm, as virtually there is no reason behind the fall.
However, the stakeholders indentified three factors behind the recent market fall: shrinking of foreign investment, apprehension of political turmoil in near future, and thin participation of institutional investors.
Even the news - the state-run Investment Corporation of Bangladesh (ICB) and the DSE shareholders are set to invest their much-talked-about fresh funds in the capital market very soon - failed to inspire the investors to inject fresh funds.
However, DSEX, the benchmark index of the premier bourse, advanced 23.65 points or 0.45 per cent to settle at 5,276 on Wednesday.
The gainers took a modest lead over the losers on the day, as out of the 341 issues traded, 155 advanced, 145 declined and 41 remained unchanged on DSE trading floor.
According to International Leasing Securities Limited, the stocks witnessed a modest gain, as the bargain-hunters showed their buying appetite on lucrative price level.
The DSE market capitalisation rose to Tk 3,831 billion on Wednesday, which was Tk 3,803 billion in the previous day.
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