Stock turnover hits 8-week low amid confidence crisis

The daily turnover on the Dhaka Stock Exchange dropped to a eight-week low on Thursday as investors were reluctant to make fresh investments amid the confidence crisis.
Turnover, a crucial indicator of the market, fell to Tk 4.85 billion, which was 24 per cent lower than the previous day. It was also the lowest transaction since June 18 when turnover was recorded at Tk 4.18 billion.
Investors reduced their stock market exposure owing to the prevailing concerns over the market outlook amid fears of a resurgence of political movements ahead of the national election, said EBL Securities.
Investors mostly focused on short-term profit-booking as the prolonged volatility and weakened strength of the market trend reduced their willingness to go for long-term investments, said the stockbroker.
Along with falling turnover, stock indices also plummeted.
The market started on a negative note, which continued till the end of the session with no sign of reversal, giving up the points that it had gained the day before.
The DSEX, the prime index of the Dhaka Stock Exchange (DSE), slid 13.13 points to settle at 6,329, after gaining nearly 14 points in the previous day.
The DS30 index, which comprises blue-chip companies, shed 8.43 points to 2,152, as the stocks faced selling pressure again after a slight recovery in the previous few days.
Top negative index contributors were Delta Life Insurance, Sea Pearl Beach Resorts, Bangladesh Shipping Corporation, Rupali Bank and Square Pharma. They jointly accounted for 8 points fall of the DSEX, according to amarstock.com, a market data analyst.
Investors have long been losing confidence in stocks as there is no clear direction for the stock market, said a stockbroker.
They focused on the food sector, which accounted for 18 per cent of the day's total turnover, followed by general insurance [15 per cent] and life insurance [13 per cent].
Delta Life Insurance was the most-traded stock, with shares worth Tk 211 million changing hands, closely followed by Fu-Wang Food, Sea Pearl Beach Resorts, JMI Hospital Requisite Manufacturing and Bangladesh Shipping Corporation.
A majority of the traded shares saw price erosion as out of 334 issues traded, 98 closed lower, 63 higher and 173 issues remained unchanged on the DSE trading floor.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI - losing 31 points to settle at 18,689 and the Selective Categories Index (CSCX) shedding 18 points to 11,172.
The port city's bourse traded 2.55 million shares and mutual fund units with a turnover volume of Tk 183 million.

babulfexpress@gmail.com