Dhaka stocks ended flat for the second day on Thursday, the last trading session of the week, amid increased turnover as the investors’ confidence in the stock market
remained shaky due to the instability on the political front.
DSEX, the benchmark general index of the Dhaka Stock Exchange, lost 0.03 per cent, or 1.41 points, to close at 3,571.26 points on the day.
While the old benchmark general index of the bourse, DGEN, gained 0.15 per cent, or 5.59 points, to finish at 3,707.48 points on the day.
Market operators said the recent Bangladesh Securities and Exchange Commission decisions, despite being positive, failed to boost the investors’ confidence as there was no stability on the political front.
In recent times, each and every change in the political arena had a great impact on the investors’ sentiment and the capital market as well, they said.
‘We do not see any hope of a dialogue between the two main opposition parties as both of them are reluctant to step aside from their position. If it continues, violence across the country will increase. That’s why a large number of investors have opted to remain inactive on the trading floor and observe the political situation before making the next move,’ said a senior officer of a merchant bank.
The high interest rate in the banking sector is another reason behind the prevailing downtrend in the capital market as the investors are keen to invest in the banking sector, which is certain to offer them profits, he said.
The blue chip index of the bourse, DS30, advanced by 0.06 per cent, or 0.81 points, to finish at 1,321.99 points on the day while the turnover of the bourse increased to Tk 202.85 crore from the earlier trading session’s Tk 170.43 crore.
Among the 275 issues traded on the day, 155 advanced, 97 declined and 23 remained unchanged.
Titas Gas topped the turnover chart on the day as its shares worth Tk 10.76 crore changed hands.
Bengal Windsor Thermoplastics topped the gainers’ list as its shares went up by 10.12 per while City General Insurance Company lost the most, 8.46 per cent.
‘Political worries continued to put a drag on market sentiment, which still remained downbeat. However, turnover turned back to BDT 2028.54mn, mostly riding on quarterly expectations driven movements,’ IDLC Investments said in its daily market commentary.
Meanwhile, DSE in a web post on Thursday declared that four newly listed companies would be added to the DSEX index on April 21.
They are Summit Purbanchol Power Company, Envoy Textiles, Argon Denims and Generation Next Fashions.
With this, the total number of securities in DSE Broad Index will be 203.
According to the recent index methodology that had been developed by the S&P Dow Jones Indices on January 28, DSE review the performance of the companies on a quarterly basis and include and exclude issues from the DSEX.
-With New Age input