Turnover dips below Tk 2.0b-mark

FE Report Dhaka Stock Exchange (DSE) will sit Sunday to discuss overall market situation and some possible reforms to restore stability in stock market, officials said. The DSE leaders said at Sunday's board meeting it would be discussed as to how the market can overcome its critical situation amid political unrest prevailing across the country. "The overall market situation will be discussed at the board meeting. We will also speak about possible supports by stakeholders to stabilise the market," said DSE President Rakibur Rahman. He said after Sunday's board meeting they would speak about some reforms undertaken by premier bourse. "Our reform proposals include investors' safety net in IPO (initial public offering), introduction of premium group for listed companies, provision of selling sponsors' shares in block market and updating listing regulations," DSE president said. He said after Sunday's board meeting the developments would be announced at a press briefing. Meanwhile, the prices of most stocks slipped for the third running session Thursday with turnover dipping below Tk 2.0 billion mark as anxious investors declined to step in further amid cloudy investment outlook. "The ongoing political uncertainty was the main reason for the recent fall in share prices as investors are losing confidence," analysts said. The General Index of the Dhaka Stock Exchange ----DGEN ended at 3,914.22 points, shedding 23.23 points or 0.59 per cent as the session went through volatile movements amid nationwide hartal. The turnover on the premier bourse stood at Tk 1.78, down by 36 per cent from previous session's Tk 2.78 billion. It was also the lowest turnover in the last 30 trading days since January 23, when it was recorded Tk 1.62 billion. "With political worries still glooming macroeconomic scenario, investors hardly had appetite for fresh positioning," commented IDLC Investments. "As bearish spell takes over the bourse, new listing centric excitements also seem to wear off a bit. Thus, bearish sentiment, shored up by a cool-down in excitements over new listing ended in a dry session, with daily turnover dropping by 36 per cent," said the merchant bank. "Due to ongoing political turbulence, market went back to the state from where it started recovering a couple of months ago. Especially on the day very low volume indicated how market liquidity has been affected," commented Zenith Investments. "Investors are lacking enough confidence as political turbulence still persisting. Turnover fell significantly due to nationwide strike," stated LankaBangla Securities. Margin loan overhang has always been a hindrance to market progress, said the stock broker. In spite of this omen, overall market is trading at attractive multiple and robust remittance inflow and foreign reserve facilitates liquid money market which is ideal for healthy capital market, the stock broker added. Of the 264 issues traded on the premier bourse, 85 advanced, 142 declined and 37 remained unchanged. All the major sectors ended in red except fuel and power which gained 0.22 per cent. This gain is mainly driven by Summit Purbanchol Power Company and Power Grid which gained 5.90 per cent and 2.34 per cent respectively. NBFIs lost 1.38 per cent the most followed by telecommunications 1.14 per cent, banks 0.47 per cent and pharmaceuticals 0.28 per cent. Noteworthy to mention, keeping aside trading of the three latest new issues (Premier Cement, Global Heavy Chemical and Golden Harvest Agro) turnover would have amounted to Tk 1.45 billion only. Meanwhile, after gaining nearly 400 per cent on debut trading previous day, Global Heavy Chemical fell 8.75 per cent as flipping rush seemed to subside. Newly listed securities controlled market activities with Summit Purbanchol Power Company topped the turnover chart with shares worth Tk 155.83 million changing hands.