Stocks ended marginally lower Thursday with turnover falling substantially as investors remained watchful following introduction of new trading system.
DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 10.69 points or 0.21 per cent to close at 4,933.03 points after witnessing volatility throughout the trading session.
The two other indices also ended in the red. The DS30, comprising blue chips lost 3.42 points or 0.18 per cent to close at 1,823.64 points. The DSE Shariah Index shed 0.76 points or 0.06 per cent to close at 1,155.39 points.
The total turnover came down to Tk 1.36 billion, registering a decline of 68 per cent over the previous session's value of Tk 4.21 billion. It was also 14-month lowest turnover since Tk 1.10 billion on October 20, 2013.
The investors' attention was mostly focused on engineering, pharma and textiles - the sectors that accounted for 18.70 per cent, 13.17 per cent and 12.76 per cent of the day's total turnover respectively.
"The overall investors' participation plummeted by 68 per cent to below Tk 1.50 billion level due to the introduction of new trading system as most of the investors have yet to familiarize with the new software interface," said International Leasing Securities in an analysis.
LankaBangla Securities said: "Stocks were traded on per unit basis as DSE introduced an "auto adjustable trading system" with a view to accelerating trading activities by resolving existing complexities".
This flex trading system allows investors to buy or sell only one share or unit; there will be no market lot of shares, said the stock broker.
"As market commenced under this new trading system, investors were watchful about stock price movement during the trading session," said the stock broker.
"The first day of new trading platform ended with other flat-ends, squeezing participation significantly as the market tried to adapt," said IDLC Investments.
Consequently, total turnover nosedived into 14-month lowest of Tk 1.36 billion, putting overall market in a depressed mood, said the merchant bank.
Besides, volatility was prevailing like past few sessions of investors' spread search, the merchant bank added.
In the meantime, pressure on current account balance eased up with improved export and remittance growth whereas internal sector still fumbled for confidence with lower than target credit growth in private sector.
BRAC EPL, a Stock Brokerage said that turnover suffered heavily as the new trading system would require some time to settle in.
All the large cap sectors closed lower. Power and NBFIs fell by 0.75 per cent and 0.74 per cent respectively. Telecommunication and pharmaceuticals also retraced 0.52 per cent and 0.42 per cent respectively.
Cement banks and food and allied also lost marginally by 0.20 per cent, 0.16 per cent and 0.04 per cent respectively.
The losers took a lead over the gainers as out of 306 issues traded, 148 advanced, 117 declined and 41 remained unchanged on the DSE floor.
Activities decreased in the major bourse where trade and volume were down by 31.40 per cent and 70.11 per cent respectively. A total of 0.0065 million trades were executed in the day's trading session with trading volume of 33.69 million securities.
Summit Alliance Port was the most traded stock with shares worth Tk 78.56 million changing hands followed by Quasem Drycells, GP, BD Tai Aluminium and Western Marine Shipyard.
Anwer Galvanizing was the day's highest gainer, posting a rise 7.90 per cent while Modern Dyeing was the worst loser, plunging by 8.85 per cent.
The port city bourse, Chittagong Stock Exchange (CSE) ended in red with its Selective Categories Index - CSCX - lost 33.05 points to close at 9,256.52 points.
Losers beat gainers 133 to 53, with 32 issues remaining unchanged at the port city bourse that traded 7.77 million shares and mutual fund units, turnover value of Tk 250.48 million.
Meanwhile, the market lot of all listed securities will be converted to single share/unit for all listed securities and Tick price of all listed securities will be Tk 0.10 except for the corporate bonds. For Corporate Bonds, tick price will be Tk 0.50 as it was before effective from December 14, CSE in a statement said Thursday.
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