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Stocks keep bleeding for three days

Turnover tumbles 32pc on prime bourse

FE REPORT | November 10, 2022 00:00:00

Stocks suffered losses for the third straight session on Wednesday as jittery investors continued their sell-off owing to a bleak expectation from the upcoming corporate declarations.

The market observed see-saw trading throughout the session while sellers dominated the trading floor at closing.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 33.96 points or 0.53 per cent to settle at 6,350. DSEX eroded over 65 points in the past four sessions.

Turnover, a crucial indicator of the market, also tumbled to Tk 10.18 billion, 32 per cent lower than the previous day's tally of Tk 14.95 billion.

Market operators said the market witnessed volatility as concerns loomed around the current macroeconomic headwinds as well as the central bank's recent decision to uplift the interest rate cap on consumer loans.

Exports and remittance are on a declining trend while the country's foreign-currency reserves slid to US$34.42 billion on Monday after the clearance of import bills.

Stocks kept losing as investors apprehended a further deterioration of the economic indicators, such as depleting foreign exchange reserves and declining bilateral trades, said EBL Securities.

A majority of the investors were pessimistic about the market outlook as the rising import costs and the ongoing dollar crisis had hampered business operations as well as profitability of the listed companies, the stockbroker said.

The investors opted to stay on the sidelines amid economic uncertainties caused by the increase in lending rate, said International Leasing Securities.

The market witnessed a buying pressure that reverted afterwards as cautious investors were involved in quick profit-booking on sector specific stocks during the last hour of the session, said the stockbroker.

Two other indices of the DSE also ended lower. The DS30 index, comprising blue chips, dropped 11.46 points to settle at 2,231 and the DSE Shariah index fell 10.22 points to close at 1,386.

Most of the traded issues remained unchanged due to the 'floor price' restriction. Of the 356 issues traded, 104 declined, 34 advanced and 218 issues remained unchanged on the DSE.

The low-cap IT sector dominated the turnover chart, grabbing 21 per cent of the day's total turnover.

Genex Infosys maintained its dominance in the turnover list with shares worth Tk 1.25 billion changing hands, followed by Orion Pharma (Tk 728 million), Bashundhara Paper Mills (Tk 629 million), Navana Pharma (Tk 478 million), Bangladesh Shipping Corporation (Tk 396 million).

Chartered Life Insurance was the top gainer, gaining 9.91 per cent while Samorita Hospital was the day's worst loser, losing 13.71 per cent.

The Chittagong Stock Exchange (CSE) also tumbled with the CSE All Share Price Index (CASPI) shedding 156 points to settle at 18,744 and its Selective Categories Index (CSCX) losing 94 points to close at 11,233.

Of the issues traded, 82 declined, 25 advanced and 104 issues remained unchanged on the CSE trading floor.

The port-city bourse traded 3.18 million shares and mutual fund units with turnover value of Tk 168 million.

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