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Stocks back in the red amid low turnover

DSE daily turnover remains below Tk 3.0b-mark

FE REPORT | July 23, 2020 00:00:00

Stocks snapped a two-day gaining streak on Wednesday, as risk-averse investors went for short-term profit booking on sector specific shares ahead of Eid festival.

The retail investors sold shares to pull out money ahead of Eid festival as only six trading days are left before Eid-ul-Azha vacation, said a leading broker.

DSEX, the key index of the Dhaka Stock Exchange, went down by 9.0 points or 0.22 per cent to settle at 4,076, after adding 35 points in the past two sessions.

Two other indices also edged lower. The DS30 index saw a fractional loss of 0.18 point to finish at 1,371 and the DSE Shariah Index shed 2.93 points to close at 945.

Share prices flickered between green and red amid existence of floor price and gradual reopening of the economy, commented UCB Capital Management.

Market analysts said investors remained worried about the ongoing Covid-19 pandemic and its impact on the country's economy.

The market has been struggling with a poor participation of investors for long due to the regulator- enforced floor price mechanism and no signs of improving the ongoing Covid-19 situation, said a merchant banker.

The daily turnover is hovering around Tk 2.50 billion in the past few days as some of the investors refrained themselves from taking fresh position due to ongoing virus scare and floor price system, he said.

Turnover, another important indicator of the market, remained low and amounted to Tk 2.47 billion on the country's prime bourse, which was Tk 2.52 billion in the previous session.

According to International Leasing Securities, stocks returned to the red as the investors mostly followed cautious stance and booked some quick gain on sector-wise issues.

The stockbroker noted that the ongoing year-end dividend declarations and quarter-end earnings disclosures might have failed to meet the investors' expectation.

Most of the shares remained stuck at the trading. Of the issues traded, 180 remained unchanged while 64 issues advanced and 96 declined on the DSE floor.

A total number of 65,829 trades were executed in the day's trading session with a trading volume of 85.38 million shares and mutual fund units.

The market-cap on the premier bourse also fell to Tk 3,168 billion on Wednesday, from Tk 3,171 billion in the previous session.

Pioneer Insurance topped the turnover chart with shares worth Tk 117 million changing hands, closely followed by Grameenphone, Nahee Aluminum, Fine Foods and Bangladesh Shipping Corporation.

Pioneer Insurance was also the day's best performer, posting a gain of 8.33 per cent while Islami Bank was the worst loser, losing 9.85 per cent following its price adjustment after record date.

The Chittagong Stock Exchange also backed to the red with its All Shares Price Index (CASPI)-losing 14 points to close at 11,607 and the Selective Categories Index - CSCX -shedding 8.0 points to finish at 7,036.

Of the issues traded, 43 gained, 54 declined and 99 remained unchanged on the CSE.

The port city bourse traded 2.27 million shares and mutual fund units with turnover value of Tk 58 million.

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