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Stocks drift lower amid poor turnover-

FE REPORT | July 06, 2020 00:00:00

Stocks edged lower on Sunday as investors remained worried about the adverse impact of the worsening pandemic situation and floor price limitation

DSEX, the key index of the Dhaka Stock Exchange, went down by 5.21 points or 0.13 per cent to settle at 3,981.

Turnover, another important indicator of the market, stood at Tk 734 million, which was 9.50 per cent lower than the previous day's Tk 811 million.

According to UCB Capital, de-growth in export earnings, falling private sector credit growth and dip in internal consumption put the economy in a tight spot.

The floor price mechanism kept exit point very narrow, said the UCB Capital.

Two other indices also ended marginally lower. The DS30 index, comprising blue chips, fell 3.37 points to finish at 1,336 and the DSE Shariah Index shed 1.06 points to close at 921.

Market analysts said the investors were worried about the adverse impact of worsening pandemic situation with looming uncertainty about economic growth and the regulator-enforced floor price system.

Market insiders said investors have failed to sell shares of more than two-thirds companies due to the floor price restriction.

Most of the shares remained stuck at the trading floor. Of the issues traded, 214 remained unchanged while 30 issues advanced and 36 declined on the DSE floor.

According to International leasing Securities, trading activities plunged further as the investors refrained themselves from taking fresh position over the worsening of the pandemic.

A total number of 22,884 trades were executed in the day's trading session with a trading volume of 30.84 million shares and mutual fund units.

The market-cap on the premier bourse also fell to Tk 3,115 billion on Sunday, from Tk 3,117 billion in the previous session.

Wata Chemicals topped the turnover chart with shares worth Tk 73 million changing hands, followed by Beximco Pharma, Bangladesh Submarine Cable, GlaxoSmithKilne and Sonarbangla Insurance.

Eastern Insurance was the day's best performer, posting a gain of 14.76 per cent following its corporate declaration while Tung Hai Knitting was the worst loser, losing 9.09 per cent.

The Chittagong Stock Exchange also edged lower with its All Shares Price Index (CASPI)-losing 15 points to close at 11,305 and the Selective Categories Index - CSCX -shedding 9.28 points to finish at 6,845.

Of the issues traded, 17 gained, 23 declined and 60 remained unchanged on the CSE.

The port city bourse traded 2.67 million shares and mutual fund units with turnover value of Tk 893 million.


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