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Turnover drops 18pc as DSEX ends flat after bumpy ride

FE REPORT | April 10, 2023 00:00:00

The daily turnover on the Dhaka Stock Exchange (DSE) tumbled below Tk 5.0 billion-mark on Sunday as most shares remained stuck at floor price.

Market operators said majority of the stocks were at the floor price level, making investors reluctant to inject fresh funds into equities.

Turnover, a crucial indicator of the market, stood at Tk 4.99 billion on the prime bourse, down 18.5 per cent from the previous day's tally of Tk 6.12 billion, as the market movement was mostly limited to a handful of stocks.

Investors were not confident enough to inject fresh funds into stocks amid a dismal market outlook, which led to lower turnover, said a merchant banker.

The participation of investors was thin as 65 per cent shares being unmoved at the floor on Sunday, he said. Of the 329 issues traded, 75 declined, 40 advanced and 214 issues remained unchanged.

The market started on an optimistic note in the early session but could not sustain due to the sale pressure from the mid-session.

At the end of the session, DSEX, the benchmark index of the DSE, settled at 6,214, with a loss of 0.18 point.

However, two other indices of the prime bourse closed in the green. The DS30 Index, which consists of blue-chip companies, rose 1.26 points to 2,200 and the DSES Index, which represents Shariah-based companies, advanced 0.19 points to 1,348.

"The benchmark index failed to stay afloat in green territory owing to the cautious selling approach of investors since they preferred to remain watchful ahead of the upcoming corporate earnings announcements," said EBL Securities.

Large-cap sectors posted mixed performance. Pharmaceutical booked the highest gain of 0.20 per cent, followed by banking with 0.20 per cent and food 0.12 per cent.

On the other hand, engineering faced the highest loss of 0.10 per cent, followed by power 0.02 per cent, and financial institutions 0.01 per cent.

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