DSE turnover hits 5-month low
Wednesday, 5 December 2012
FE Report
Dhaka stocks ended flat Tuesday with turnover value touched the five-month low amid country-wide hartal as investors lost confidence to make fresh investment in the market.
Despite, country-wide hartal enforced by Bangladesh Jamaat-e-Islami, the trading began as usual amid thin presence of investors.
The DSE turnover stood at Tk 1.53 billion, a 9.46 per cent lower from the previous session. It was also the lowest turnover since July 18 last, when it was recorded Tk 1.21 billion.
The trading started with negative note that followed throughout the session with also being hit by the hartal scenario that seemed to have further lowered the activity especially during the opening few hours.
However, the participation of bargain hunters during the later half of the day seemed to lift up the spirit of the market.
The prime index of the Dhaka Stock Exchange, DGEN closed at 4,086.05, losing slightly by 0.60 points or 0.01 per cent, following the previous two sessions' downhill.
On the other hand, Chittagong stocks closed positive with CSE Selective Category Index went up by 13.14 points to close at 7,967.
"Hartal sentiment influenced the market pulse. As a result, investors were not keen to participate and turnover touched the five months' lowest level," commented IDLC Investments.
"Investors adopted a 'wait-and-see policy' amid growing political violence," the IDLC analysis said.
"The current weak trend continues as it approaches the mid-week period with constantly decreasing volume. The psychological 4,000 level index seems to be playing in the market participants' mind as it has already showed some resistance, but the lack of turnover is not supporting the strength needed to hold this line," according to Zanith Investments' market analysis.
"It is now the time that needs cautious market observation as an increase in the turnover is mostly needed to stabilise the market confidence under the prevailing condition," observed the Zenith Investments.
The averages also do not confirm of any major reversal under the prevailing conditions and there is likely to be further downside tests waiting, the Zenith analysis said.
However, there is still potential for the index to bounce back as long as the 4,000 level resistances is honored and with the establishment of major lows, slight bit of upbeat in market activity may cause the index see sharp hike, the analysis by Zenith added.
A total of 0.054 million trades were executed with 41.30 million shares of trading volume.
Out of 259 issues traded on the DSE, 163 advanced, 66 declined while 30 remained unchanged.
Dhaka stocks ended flat Tuesday with turnover value touched the five-month low amid country-wide hartal as investors lost confidence to make fresh investment in the market.
Despite, country-wide hartal enforced by Bangladesh Jamaat-e-Islami, the trading began as usual amid thin presence of investors.
The DSE turnover stood at Tk 1.53 billion, a 9.46 per cent lower from the previous session. It was also the lowest turnover since July 18 last, when it was recorded Tk 1.21 billion.
The trading started with negative note that followed throughout the session with also being hit by the hartal scenario that seemed to have further lowered the activity especially during the opening few hours.
However, the participation of bargain hunters during the later half of the day seemed to lift up the spirit of the market.
The prime index of the Dhaka Stock Exchange, DGEN closed at 4,086.05, losing slightly by 0.60 points or 0.01 per cent, following the previous two sessions' downhill.
On the other hand, Chittagong stocks closed positive with CSE Selective Category Index went up by 13.14 points to close at 7,967.
"Hartal sentiment influenced the market pulse. As a result, investors were not keen to participate and turnover touched the five months' lowest level," commented IDLC Investments.
"Investors adopted a 'wait-and-see policy' amid growing political violence," the IDLC analysis said.
"The current weak trend continues as it approaches the mid-week period with constantly decreasing volume. The psychological 4,000 level index seems to be playing in the market participants' mind as it has already showed some resistance, but the lack of turnover is not supporting the strength needed to hold this line," according to Zanith Investments' market analysis.
"It is now the time that needs cautious market observation as an increase in the turnover is mostly needed to stabilise the market confidence under the prevailing condition," observed the Zenith Investments.
The averages also do not confirm of any major reversal under the prevailing conditions and there is likely to be further downside tests waiting, the Zenith analysis said.
However, there is still potential for the index to bounce back as long as the 4,000 level resistances is honored and with the establishment of major lows, slight bit of upbeat in market activity may cause the index see sharp hike, the analysis by Zenith added.
A total of 0.054 million trades were executed with 41.30 million shares of trading volume.
Out of 259 issues traded on the DSE, 163 advanced, 66 declined while 30 remained unchanged.