Dhaka stocks ended down in volatile trading on Monday as some government-owned entities supported the market to keep it afloat on the day after the key index hit its lowest in more than five months in the previous day amid a fear of escalation of political confrontations.
DSEX, the benchmark general index of Dhaka Stock Exchange, declined to 3,763.88 points, shedding 0.20 per cent or 7.79 points on Monday.
Within the first one-and-a-half hour of the day’s trading the index lost around 80 points to go below 3,700-point mark, but it later recovered most the lost points.
The DSEX had lost 71.87 points to close at 3,771.68 points, lowest since May 28, on Sunday, first trading session after a nine-day vacation on the occasions of Eid-ul-Azha and Durga Puja.
DS30, the blue-chip index of the DSE, declined by 0.01 per cent, or 0.21 points, to finish at 1,358.80 points on Monday.
Market operators said the market started with a significant fall as investors sold off huge number of shares in early trading as they feared that the existing political crisis would deepen in the coming days.
Investors feared that after October 25 the political violence would escalate as the ruling alliance and the opposition alliance remained stick to their respective positions over the polls-time government, they said.
Market operators said the Investment Corporation of Bangladesh and its subsidiaries supported the market to save it from a major fall.
They said turnover of the bourse also dropped in recent days as most of the investors refrained from trading due to uncertainties on the political front.
On Monday, the DSE turnover, however, increased to Tk 167.11 crore from the previous trading session’s Tk 110.43 crore which was the lowest since May 6.
‘Heavy shed-offs of 82 points in first one and half hours in line with earlier session’s toll created a snapshot of price advantage for investors. Consequently, buying spree started and pulled up indices, which helped market to end in flat region,’ IDLC Investments said in its daily market commentary.
‘However, fear based on political instability extended till today’s [Monday] session,’ it also said.
Of the 283 shares and mutual funds traded on the day, 166 advanced, 95 declined and 22 remained unchanged.
Bangladesh Submarine Cable Company led the turnover leaders’ list with its shares worth Tk 7.56 crore changing hands.
Square Pharmaceuticals, Argon Denims, JMI Syringes and Medical Devices, Envoy Textile Mills, Bangladesh Building Systems, Orion Pharma, Grameenphone, BSC and CMC Kamal were the other top turnover leaders.
Legacy Footwear gained the most on the day with a 9.96-per cent increase in its share price, while Modern Dying lost the most, shedding 9.78 per cent.
-With New Age input
