DSE turnover dips below Tk 8.0 billion-mark

The turnover on Dhaka Stock Exchange (DSE) tumbled below Tk 8.0 billion-mark on Monday, hitting a seven-week low, as investors were reluctant to take fresh exposure in the market.
Turnover, a crucial indicator of the market, came down Tk 8.18 billion, which was 13 per cent lower than the previous day's mark of Tk 8.23 billion.
It was the biggest single-day transaction about seven weeks low since December 17, 2020, when the turnover totalled a record Tk 7.05 billion.
Market analysts said most of the investors fear that the index may fall further, so they are reluctant to purchase stocks, which brought down the turnover.
Lower than expected earnings declarations, pressure on margin loans adjustment to regulatory allowable limit coupled with price fall of large-cap stocks putting negative impact on the market, said a merchant banker, seeking anonymity.
Along with turnover, DSEX, the prime index of the DSE, also plunged to one-month low since December 30, 2020 as investors continued their selling binge on major sectors stocks.
DSEX, the prime index of the DSE, went down by 50.06 points or 0.88 per cent to settle at 5,599. DSEX eroded 125 points in the past two consecutive sessions.
Two other indices also saw major corrections. The DSE 30 Index comprising blue chips plunged 34.90 points to finish at 2,125 and the DSE Shariah Index (DSES) fell 11.23 points to close at 1,254.
The risk-averse investors continued to release their holdings in sector-wise stocks as the latest earnings declarations failed to meet investors' expectations, said a leading broker.
The stockbroker noted that some investors were busy rebalancing their portfolio based on the latest corporate declarations.
Besides, some brokerage houses and merchant banks are continuing pressurized their clients for adjusting the margin loan to regulatory allowable limit, he said.
The market remained intensely volatile with declining participation as investors continued their cautious stance while some selling offs stocks based on the recent earning declarations, commented EBL Securities.
The top negative index contributors were British American Tobacco, Robi, Beximco, Beximco Pharma and Square Pharmaceuticals, according to data from amarstock.com, a stock market data analyst.
According to International Leasing Securities, the market opened on negative tune which continued till the closure as both the general and institutional investors liquidated their investment though the bargain hunters tried to reverse the downward trend.
The stockbroker noted heavy sell pressure in food, financial institution, pharma, power and telecom sectors pushed down the DSEX to below 5,600 points mark which was the lowest since 30 December 2020.
Among the major sectors, food & allied saw the highest correction, losing 3.80 per cent, followed by miscellaneous with 2.80 per cent, financial institutions 1.60 per cent, pharma 1.20 per cent, power 1.0 per cent and telecom 0.90 per cent.
Cement sector gained 2.50 per cent riding on M. I. Cement as the cement marker-stole the show gaining almost 10 per cent for the second straight day as the investor reacted positively to its second quarter earnings result. It reported that its EPS was Tk 1.52 in Q2 of 2020, up from negative Tk 1.80 in the same period a year earlier.
Losers took a modest lead over the gainers, as out of 356 issues traded, 138 declined, 110 advanced and 108 remained unchanged on the DSE trading floor.
Beximco- the flagship company of Beximco Group -- continued to dominate the turnover chart with 16.34 million shares of 1.40 billion changing hands, followed by BATBC, LankaBangla Finance, Robi Axiata and Beximco Pharma.
Agrani Insurance was the best performer, posting a gain of 10 per cent while Envoy Textile was the worst loser, losing 6.69 per cent.
A total number of 127,444 trades were executed in the day's trading session with a trading volume of 172.65 million shares and mutual fund units.
Market-cap of the DSE fell to Tk 4,758 billion on Monday, from Tk 4,790 billion in the previous day.
The Chittagong Stock Exchange (CSE) also fell sharply with the CSE All Share Price Index - CASPI -losing by 178 points to settle at 16,296 and the Selective Categories Index - CSCX shedding 109 points to close at 9,833.
Of the issues traded, 111 declined, 68 advanced and 55 remained unchanged on the CSE.
The port city's bourse traded 8.40 million shares and mutual fund units with turnover value of Tk 276 million.

[email protected]