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Turnover hits one-month low on Dhaka bourse

Stocks snap two-day gaining streak

FE REPORT | June 27, 2022 00:00:00

The stock market slipped into the red on Sunday, with turnover hitting 30-day low, as most investors were reluctant to put fresh funds in stocks amid persistent macroeconomic worries.

Turnover, a crucial indicator of the market, stood at Tk 5.94 billion on the country's premier bourse, slumping further by 13 per cent over previous day's mark of Tk 6.84 billion.

It was the lowest single-day transaction in one-month since May 26, when the turnover totalled a record Tk 5.39 billion.

Along with sluggish turnover, DSEX, the core index of the Dhaka Stock Exchange (DSE), also went down by 26.56 points or 0.42 per cent to settle at 6,301, after gaining 16 points in the past two days.

Market analysts said most investors remained shaky amid the rising cost of living due to soaring inflation while instability of exchange rates and upsurge in call money rate made them worried.

"Several unfavorable macroeconomic indicators like the rising inflation, local currency devaluation and foreign sell-off have kept investors cautious," said a merchant banker, seeking anonymity.

A section of investors also went for selling shares to book profit ahead of Eid-ul-Azha, the second largest religious festival of the Muslims, he said.

He noted that lowered circuit breaker limitation is preventing many investors from buying and selling shares which is also a major reason behind the low turnover.

Investors' participation reduced to a great extent as most of the investors favored sitting on cash ahead of Eid festival, said a leading broker.

The much-awaited Padma Bridge opened on Sunday to traffic. But the news failed to cheer up stock investors despite economists predicting huge economic impacts of the bridge, he said.

Stocks ended lower further after two-day attempts to recover against dismal macroeconomic indicators in the country, while investors remained on the sidelines ahead of possible contractionary monetary policy, said EBL Securities.

"The investors decreased their participation in the market amid a lack of clear direction regarding the overall macroeconomic scenario," said International Leasing Securities.

Two other indices also closed lower with the DS30 index, a group of 30 prominent companies, dropping 11.99 points to finish at 2,286 and the DSE Shariah Index (DSES) lost 4.06 points to close at 1,378.

Among the major sectors, cement saw the highest loss of 1.20 per cent, followed by power with 0.60 per cent, banking 0.30 per cent, financial institutions 0.30 per cent and pharma 0.10 per cent.

On the other hand, telecom and food lost 0.30 per cent and 0.20 per cent respectively.

Losers took a strong lead over the gainers as out of 381 issues traded, 230 ended lower, 94 higher and 57 remained unchanged on the DSE trading floor.

Fu-Wang Food was the most-traded stocks with shares worth Tk 342 million changing hands, followed by Anwar Galvanizing (Tk 286 million), Shinepukur Ceramics (Tk 259 million), Beximco (Tk 195 million) and Salvo Chemicals (Tk 138 million).

Global Heavy Chemicals was the best performer, posting a gain of 9.91 per cent while FAS Finance was the worst loser, losing 2.0 per cent.

The Chittagong Stock Exchange (CSE) also slipped into the red with its All Shares Price Index (CASPI)-losing 45 points to finish at 18,573 while the Selective Categories Index - CSCX lost 28 points to close at 11,113.

Of the issues traded, 162 declined, 83 advanced and 36 issues remained unchanged on the CSE.

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