Dhaka stocks ended flat yesterday following a topsy-turvy trading session due to the inactiveness of institutional investors. The benchmark General Index, DGEN, the indicator of Dhaka Stock Exchange, closed at 5,727, after adding 0.97 points or 0.02 percent.
“It is matter of concern that turnover is very low as institutional investors are yet to be fully active in the market,” said Prof Mahmood Osman Imam, who teaches finance at Dhaka University.
Investors manipulate the market by buying heavily into small-cap companies to hike prices, while the market experiences low turnover, said Imam, also a member of index development committee of DSE.
He suggested that the interest rates of margin loans of some small investors might be waived for the development of the capital market.
Some groups possibly are trying to push the market to such low level that they can purchase shares at lower prices, said a market analyst.
The securities regulator should find out who want to play foul in the market, he added.
A total of 85,354 trades were executed during the trading session generating Tk 296 crore in turnover, which is 3.8 percent higher than the previous day.
The market started with a positive trend and gained about 40 points in five minutes. Afterward, it experienced fluctuations several times and finally ended the session flat.
Of the total 258 issues that traded on the premier bourse, 152 ad-vanced and 90 declined. Sixteen securities remained unchanged.
Lafarge Surma Cement was the most active share in turnover with 5.3 lakh shares worth Tk 20.18 crore changing hands.
Rahima Food was the biggest gainer of the day as it posted a 8.18 percent rise, while Modern Dyeing and Screen Printing was the worst loser, plummeting by 7.13 percent.
The Chittagong Stock Exchange declined yesterday with the Selective Categories Index, CSCX of CSE, going down 56 points or 0.54 percent, to end the day at 10,328.
The port city bourse traded 57.24 lakh shares and mutual fund units worth Tk 41.24 crore. Losers beat advancers 89 to 75. Fifteen securities remained unchanged.
-With The Daily Star input
