Dhaka stocks returned to a positive zone on Thursday, the last trading session of the week, but the turnover of the bourse declined to a four-month low because of investors’ cautious trading. The key index of Dhaka Stock Exchange, DSEX, rose by 0.33 per cent, or 15.94 points, to close at 4,772.55 points. Turnover of the burse declined to a four-month low at Tk 263.79 crore on Thursday after the turnover of Tk 263.69 crore in July 20 this year.
Turnover at the bourse was Tk 312.70 crore in the previous trading session.
Market operators said that investors’ participation on the trading floor fell below Tk 300 crore mark for the first time on Tuesday after July this year as they might have opted to watch the market movement before taking their next investment move.
On the other hand, Bangladesh Merchant Bankers Association’s clarification regarding its proposal of including investors with above Tk 1 crore margin loans under the credit information bureau reporting might have helped investors to restore confidence to some extent and reduce panic-driven share sell-offs accordingly, they said.
Investors got panicky on Monday following media reports on a BMBA proposal of including investors with above Tk 1 crore under the CIB reporting of Bangladesh Bank.
Following criticism from the stakeholders regarding its proposal, the BMBA president Tanjil Chowdhury at a press conference on Tuesday said that, ‘We do not believe that the CIB reporting proposal is affecting the capital market. If it is found that the proposal is premature, we will not pursue it further.’
Union Capital managing director Akter H Sannamat told New Age, ‘Due to the recent decline in share prices, a section of investors refrained from purchasing shares in an anticipation that the market might decline further, while some others refrained from selling shares to observe the market trend.’
He said that the market was on decline for last couple of weeks due to various reasons, amid the negativity misinterpretation of a BMBA proposal panicked investors and resulted in sharp decline in share prices.
DS30, the blue-chip index of DSE, finished at 1,760.89 points, adding 0.50 per cent or 8.81 points.
The Shariah index of the bourse, DSES, finished flat at 1,106.85 points, shedding 0.16 per cent or 1.84 points.
Of the 302 shares and mutual funds traded on the day, 162 advanced, 105 declined and 35 remained unchanged.
‘Combined with heightened volatility and low turnover, the closing session of the week ended flat,’ IDLC Investments said in its daily market commentary.
‘Alongside, BMBA’s recent clarification regarding its proposals helped the market to stabilize, for now,’ it said.
Keya Cosmetics led the turnover chart on the day as its shares worth Tk 11.91 crore changed hands.
-With New Age input
