Dhaka stocks inched down on Tuesday after a seven-day sharp fall with the Dhaka Stock Exchange’s turnover hitting a fresh seven-month low as investors failed to sense any improvement in the market trend soon, said market operators.
DSE turnover on Tuesday declined to Tk 196.79 crore from Tk 217.07crore in the previous trading session.
Tuesday’s turnover was the lowest since October 22 last year when the turnover was at Tk 188.82 crore.
The key index of the DSE, DSEX, finished at 4,363.49 points, shedding 0.01 per cent or 0.77 points.
Market operators said investors’ participation on the trading floor declined further on the day as they could not sense any improvement in the market situation within few days.
Investors were also speculating that the next budget might not contain any stimulus for the capital market, they said.
Operators said investors were also apprehending that a section of large-scale investors might become inactive on the trading floor as they were waiting for cheaper shares.
They said investors, mostly retail ones, had been suffering from lack of confidence amid uncertainties in recent weeks following the finance minister’s announcement that the government ‘would not allow’ legalisation of undisclosed money in the upcoming budget.
The finance minister, AMA Muhith, made the declaration on May 8 and 9.
Operators said the shakiness turned into panic as the High Court on Wednesday last week declared illegal a Bangladesh Securities and Exchange Commission directive issued on November 22, 2011 that had asked sponsor-directors of listed companies to individually hold minimum 2 per cent shares of the paid-up capital of their respective companies.
The Appellate Division of the Supreme Court, however, on Thursday evening stayed the HC verdict.
Recently the Bangladesh Bank in a bid to control the banks’ capital market investment had fined and warned some banks for increasing their capital market investment beyond the allowable limit that made investors anxious, market operators said.
Besides, after the demutualisation of the stock exchanges and formation of demutualised boards, the stock exchanges are yet to take any effort to boost investors’ confidence over the new boards, said operators.
DS30, the blue-chip index of the bourse, however, increased by 0.42 per cent, or 6.75 points, to close at 1,589.82 points on Tuesday.
The Shariah index of DSE, DSES, finished at 971.88 points, adding 0.04
per cent or 0.48 points.
Of the 289 shares and mutual funds traded on the day, 131 advanced, 110 declined and 48 remained unchanged.
Hwa Well Textiles led the turnover chart as its shares worth Tk 8.92 crore changed hands.
Lafarge Surma Cement, Grameenphone, Square Pharmaceuticals, MJL Bangladesh, Delta Life Insurance, Heidelberg Cement, Active Fine Chemicals and Matin Spinning were among the other turnover leaders.
Progressive Life Insurance increased the most on the day with a 7.67-per cent rise, while Federal Insurance declined the most, shedding 12.50 per cent.
-With New Age input
