Stocks on both the bourses witnessed a downward trend in the early trading on Tuesday as investors showed their buying appetite based on the latest quarterly earnings.
Following the previous two days’ sharp decline, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened on a negative note this morning with low trading activities.
After the first hour of trading, DSEX, the key index of the DSE, fell more than 24 points while the CSE All Share Price Index (CASPI) of port city’s bourse dropped 100 points at 11:00 when the report was filed.
DSEX, the prime index of the DSE, went down by 24.53 points or 0.43 per cent to stand at 5,575 points at that time.
Debutant Mir Akhter Hossain Ltd, which recently raised Tk 1.25 billion through an initial public offering, was frozen at 50 per cent upper circuit on the DSE within a few minutes of trading on the first day.
After the first hour of trading till 11:00 am, a total of 520 shares changed hands at the halted price, DSE data show.
The company's share reached at Tk 81, soaring the highest allowable limit of 50 per cent on the first day of trading, from its issue price of Tk 54 each.
Two other DSE indices also saw a downturn till then. The DS30 index, comprising blue chips lost 17.35 points to reach at 2,108 points and the Shariah Index (DSES) shed 7.97 points to stand at 1,246 points till then.
Market analysts said lower than expected earnings declarations, pressure on margin loans adjustment to regulatory allowable limit coupled with price fall of large-cap stocks putting a negative impact on the market.
Turnover, another important indicator of the market, stood at Tk 2.01 billion within the first hour of trading at 11:00 am.
Of the issues traded till then, 118 advanced, 95 declined, and 108 remained unchanged.
Beximco was the most traded stock till then with shares worth Tk 602 million changing hands, followed by Beximco Pharma, Republic Insurance, LankaBangla Finance, and ROBI.
The Chittagong Stock Exchange also saw a downward trend till then with the CASPI losing 100 points to stand at 16,195, also at 11:00 am.
Of the issues traded till then, 32 gained, 38 declined, and 28 issues remained unchanged with Tk 61 million in turnover.