Stocks continue to dip

FE Report | Published: December 15, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Stocks plummeted for the second running sessions Sunday as the investors are yet to fully adopt themselves to the new trading system. It was the second sessions after introduction of new trading system.
The premier bourse - Dhaka Stock Exchange (DSE) launched a new and fast automated trading system Thursday for ensuring smooth share transactions as well as mitigates some existing problems. The investors are trying to adapt the new trading system.
DSEX, the prime index of the DSE came down below the 'psychological' threshold of 4,900-mark after two weeks and ended at 4,892.95 points, shedding 40.07 points or 0.81 per cent from the previous session.
The two other indices also closed in the red. The DS30, comprising blue chips lost 15.59 points or 0.85 per cent to close at 1,808.05 points. The DSE Shariah Index dropped 4.99 points or 0.43 per cent to close at 1,150.39 points.
Turnover remained dry at DSE and amounted to Tk 2.00 billion, registering an increase of 47 per cent over the previous session's 14-month lowest turnover of Tk 1.36 billion.
The investors' attention was mostly focused on textiles, engineering and pharma - the sectors that accounted for 15.10 per cent, 12.88 per cent and 12.26 per cent of the day's total turnover.
"The market plunged for the second consecutive sessions as the investors have yet to fully adopt themselves to the new trading system," said International Leasing Securities in an analysis.
The major index of the DSE plunged 40 points throughout the day as issues from the major sectors including large and small caps witnessed moderate price correction, it added.
The investors' participation, however, increased significantly even though lack of confidence existent among the investors, said the International Leasing.
LankaBangla Securities said: "Market passed another sluggish trading session and slumped to two weeks' low as investor upheld cautious mode and taking time to be accustomed to the new trading system".
DSE is likely to review its charges on share trading following a jump in the number of trades for share transaction after the introduction of the lot-free trading system, said the stock broker.
IDLC Investments said: "The market observed another major slump, while sellers outnumbered the buyers amid low turnover".
"Sluggishness in turnover was partly explained by the adoption of new trading software in DSE," said the merchant bank.
"Brokerage houses are facing difficulty using new DSE software which is one of the major reasons for the ongoing downtrend," said Zenith Investments.
"Investors should reap the opportunity of buying shares at low prices as market may get over its bearish cycle at any point of time," said the Zenith analysis.
"Investors and traders need time to settle in with the newly installed trading system," said BRAC EPL, a stock brokerage.
Among the large cap sectors, only cement 1.07 per cent yield positive returns. All the other sectors closed lower. Telecommunication registered the highest loss of the session with 1.96 per cent decline.
Food and allied went down by 1.77 per cent. Banks and power retraced by 1.18 per cent and 1.13 per cent respectively. Pharmaceuticals and NBFIs also declined 0.84 per cent and 0.21 per cent respectively.
The losers took a lead over the gainers as out of 306 issues traded, 170 advanced, 103 declined and 33 remained unchanged on the DSE floor.
Activities increased in the major bourse (DSE) where trade and volume were up 19.05 per cent and 64.73 per cent respectively. A total of 0.077 million trades were executed with trading volume of 56.01 million securities.
Miracle Industries was the day's highest gainer, posting a rise 10.24 per cent while Jamuna Oil was the worst loser, plunging by 14.18 per cent following its price adjustment after record date.
The port city bourse, Chittagong Stock Exchange (CSE) ended in red with its Selective Categories Index - CSCX - lost 88.60 points to close at 9,167.92 points.
Losers beat gainers 175 to 60, with 25 issues remaining unchanged at the port city bourse that traded 9.35 million shares and mutual fund units, turnover value of Tk 284.77 million.
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