Turnover hits 14-month low
Dhaka stocks declined on Thursday with the daily average turnover of the bourse hitting 14-month low as investors were uncomfortable with the newly launched trading system.
Turnover of the bourse declined to Tk 136.89 crore on the day compared with that of Tk 421.59 crore in the previous trading session. Thursday’s turnover was the lowest since October 20 last year when turnover at the bourse was Tk 110.43 crore.
The key index of DSE, DSEX, declined to 4,933.03 points, shedding 0.21 per cent or 10.69 points.
Brokers-dealers said that the investors were uncomfortable with the new trading system and software, which were launched on the day, due to some technical reasons that made them watchful at the trading floor.
Investors were suffering from indecision as there was no ticker of share prices on the new trading board, they said.
They also said that the new system is comparatively slow than the existing system that delays them in submitting orders.
Due to the scope of trading 1 share at a time, the number of trade will increase significantly that will increase investors’ cost of trading compared with the existing transaction charge, they said.
On the other hand, purchase power was not updating automatically after execution of share sales by investors.
Besides, there was no scope of increasing share limit during the trading hour, they said.
‘Ticker of share prices let us know prices constantly, but the new trading system does not contain it that has created problem for investors in keeping updated and making investment decision,’ Md Kobir Uddin, a retail investor,
told New Age.
Asked, DSE managing director Swapan Kumar Bala told New Age that there was option of getting constant information of all share prices in another form in the new trading system.
‘Besides, we are also trying to introduce ticker like the previous system very shortly,’ he said.
‘Total 132 active brokers logged-in the trading server and 65,102 trades were executed on the day,’ he said.
He also said, ‘DSE is ready to solve all the problems that will arise in the new system.’
As the transaction charge on share trade has become a concern for brokers, the board may take a suitable decision in its next meeting to solve the problem, he said.
DS30, the blue-chip index of the bourse, finished at 1,823.64 points, declining 0.18 per cent or 3.42 points.
The Shariah index of DSE, DSES, closed at 1,155.39 points, shedding 0.06 per cent or 0.76 points.
Of the 305 shares and mutual funds traded on the day, 117 advanced, 148 declined and 41 remained unchaged.
‘The first day of new trading platform ended with another flat-end, squeezing participation significantly as the market tried to adapt,’ IDLC Investments said in its daily market commentary.
‘Consequently, total turnover nosedived into thirteen and half months’ lowest of BDT 1.4 bn, putting overall market in a depressed mood,’ it said.
‘Besides, volatility was prevailing like past few sessions of investors’ spread search,’ IDLC said.
Summit Alliance Port led the turnover chart on the day as its shares worth Tk 7.85 crore changed hands.
Quasem Drycells, Grameenphone, BD Thai Aluminum, Western Marine Shipyard, Square Pharmaceuticals, Agni Systems, BEXIMCO, Tung Hai Knitting and Hamid Fabrics were among other turnover leaders.
Anwar Galvanizing gained the most on the day as its share prices rose by 7.14 per cent, while Modern Dyeing was the worst loser shedding 8.85 per cent.
Earlier, at the opening ceremony of the DSE’s new trading system held in a city hotel speakers said the automated trading system would help the bourse achieve foreign investors focus and diversify its business.
State minister for finance MA Mannan chaired the launching ceremony where Bangladesh Securities and Exchange Commission chairman M Khairul Hossain, DSE chairman Siddiqur Rahman Miah, DSE managing director Swapan Kumar Bala, Nasdaq executive vice-president Lars Ottersgård and FlexTrade online division chief executive officer Jean-Michel Blanco also spoke.
Mannan said with the introduction of a new trading system the DSE would be able to launch new products like ETF, Sukuk and other modern products of the capital market.
‘The DSE’s upgradation with new automated trading system will also help the government strengthen digitalisation of Bangladesh,’ he said.
Nasdaq OMX, an American multinational financial services corporation, provided the matching engine and FlexTrade, a US-based multinational company, provided the order management system of the bourse.
-With New Age input
