Stocks tumbled Sunday, with turnover hitting 11 months low on the prime bourse, as worried investors dumped their holdings to avoid further losses.
The recent regulatory intervention failed to stop the market fall as investors were reluctant to make fresh investments amid a fear of global economic turmoil due to the ongoing Russia-Ukraine war, market insiders said.
Turnover, the crucial indicator of the market, fell over 26 per cent to Tk 6.16 billion, compared to the previous day's tally of Tk 8.35 billion.
It was also the lowest single-day transaction in the last 10 months since April 18, 2021 when turnover was recorded at Tk 6.02 billion.
The core index of the Dhaka Stock Exchange (DSE) also dipped below the 6,700-mark after four trading days as investors sold shares heavily to avoid further losses.
DSEX, the key index of the DSE, slid 67.54 points to settle at 6,698, after remaining flat in the past three consecutive sessions.
Market analysts said investors remained worried about the possible adverse impact of the Russia-Ukraine war on the country's economy while some were reluctant to make fresh investment in stocks ahead of the holy Ramadan.
"The ongoing Russia-Ukraine war, lower-than-expected dividend declarations of some companies, coupled with the temporary circuit breaker, held back many investor from putting fresh bets on stocks," said an analyst at a leading brokerage firm.
When asked about the low turnover, a leading merchant banker said, investors might have hesitated to take fresh stake in the market and followed 'wait-and-see' strategy for upcoming dividends and holy Ramadan.
Some media reported that the stock market regulator is thinking of withdrawing the restriction of lower limit circuit breaker, which also prompted many investors to sell shares, he said.
"Despite interventions by the regulator and the earlier short-lived upward momentum failed to recover investors' sentiment as the Russia-Ukraine war escalates inflationary pressure on the economy further," said EBL Securities.
Trading activities remained sluggish and participation on the bourse logged the lowest in this year as most investors remained on the sidelines owing to the temporary circuit breaker, said the stockbroker.
Two other indices also ended lower with the DSE 30 Index, comprising blue chips, dropping 23.50 points to finish at 2,434 and the DSE Shariah Index (DSES) fell 13 points to close at 1,441.
Five large-cap stocks such as British American Tobacco Bangladesh, Robi, IFIC Bank, ICB and LafargeHolcim jointly contributed 20 points fall of DSEX.
Major sectors suffered losses with IT sector losing the most of 1.90 per cent, followed by financial institutions with 1.70 per cent, cement 1.70 per cent, food 1.30 per cent, power 0.90 per cent, engineering 0.90 per cent, banking 0.80 per cent, pharma 0.80 per cent and telecom 0.50 per cent.
Prices of more than 89 per cent traded issues fell on the prime bourse, as out of 379 issued traded, 339 declined, 23 advanced and 17 remained unchanged on the DSE trading floor.
Beximco topped the turnover list with shares worth Tk 535 million changing hands, closely followed by Dragon Sweater (Tk 276 million), Orion Pharma (Tk 172 million), IFIC Bank (Tk 136 million) and Bangladesh Shipping Corporation (Tk 121 million).
Low-cap companies continued to dominate the top turnover chart with Takaful Islami Insurance being the top gainer, posting 6.61 per cent rise, followed by Hwa Well Textiles (3.66 per cent), Peoples Insurance (3.64 per cent), HR Textile (3.60 per cent), and Apex Spinning (2.11 per cent).
IFIC Bank was the day's worst loser, losing 7.64 per cent following its corporate declarations.
The Chittagong Stock Exchange (CSE) closed sharply lower with the CSE All Share Price Index - CASPI -losing 165 points to settle at 19,655 and the Selective Categories Index - CSCX - shedding 99 points to close at 11,791.
Of the issues traded, 237 declined, 30 advanced and 15 issues remained unchanged on the CSE.
The port-city bourse traded 8.45 million shares and mutual fund units with turnover value worth nearly Tk 176 million.
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