Downward market shoos away investors, driving turnover to two-month low

The Dhaka bourse on Thursday posted a two-month low turnover as many investors adopted cautious moves following the market's downward trend in the previous four sessions.
The turnover was recorded at 4.65 billion, a 35.7 per cent decline from the previous session. Of the total turnover, Tk 453 million came from transactions executed on the block board of the premier bourse.
The broad index of the Dhaka Stock Exchange (DSE), however, returned to the green territory breaking the losing streak of the previous four sessions on gains of life insurance companies.
The DSEX exhibited volatility throughout the Thursday session as buyers and sellers were busy on both sides of the trading fence.
Insiders said the market experienced the year-ending sell offs. Many investors sought to enjoy tax rebate showing investments in stocks before the closure of the ongoing fiscal year.
The market opened the day's session positively, but soon the DSEX went down sharply and exhibited ups and downs till the closure.
At the end of the session, the broad index managed to close marginally higher at 6,280 points with a rise of 5.25 points.
The index escaped loss as insurance companies bounced back following investors' increased participation. The insurance stocks endured major price corrections in the previous sessions and dominated the chart of top 10 losers.
According to a market review of EBL securities, the core index managed to stay afloat after corrections in the previous four sessions in a row because of a marginal price appreciation of selective large-cap scrips.
Of the large-cap companies, LafargeHolcim Bangladesh had the highest contribution of 1.1 per cent to the pulling of the broad index DSEX.
The Shariah index and DS30 index comprising blue chip securities closed flat.
On Thursday, the DSE featured the lowest turnover since April 18, the day when the turnover was Tk 5.58 billion.
Of the total issues traded, 89 advanced, 62 declined and 189 were unchanged on the premier bourse.
International Leasing Securities said investors' pessimistic sentiment and a lack of confidence played a role behind the sharp decline in market turnover.
Small-cap companies from different sectors such as IT and life insurance were in consideration of investors who took fresh positions in stocks.
The life insurance sector had the highest contribution of 18.80 per cent to the market turnover. The sector also saw the highest appreciation of 0.7 per cent while another major sector-pharmaceuticals & chemicals-declined marginally.
The food & allied sector saw the second highest investor participation and grabbed 10 per cent of the market turnover.
Bangladesh Shipping Corporation topped the scrip-wise turnover chart with a share transaction of Tk 236 million, followed by Navana Pharmaceuticals, Meghna Life Insurance and Sea Pearl Beach Resort & Spa.
Apex Tannery was the number one gainer with a 9.93 per cent price appreciation while Bangas was the day's worst loser as it shed 6.60 per cent on the premier bourse.
CASPI, broad index of the Chittagong Stock Exchange (CSE), on Thursday too closed marginally higher. At the end of the session, the index closed at 18,560 points with a rise of 12.36 points.

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