The prime index of the Dhaka Stock Exchange (DSE) dropped to a 4.5-month low Tuesday as stocks continued to bleed since lifting the floor prices from certain issues that put further strain on the ailing market.
The market witnessed a downward momentum throughout the session, while the last-hour buying spree on selective issues offered a marginal recovery to the core index.
DSEX, the prime index of the Dhaka Stock Exchange, finally went down by 9.42 points or 0.15 per cent to settle at 6,180, the lowest since August 14 this year.
The daily trade turnover remained low and amounted to Tk 2.69 billion, 36 per cent higher, than the previous day’s 2.5 years’ lowest turnover of Tk 1.98 billion.
“Investors are taking a wait-and-see approach ahead of the year-end since there is yet no positive trigger for the market to bounce back from the prolonged bearish sentiment,” said EBL Securities.
Moreover, the 1 per cent lower circuit breaker for certain issues curbed market liquidity because the current prices could not attract bargain hunters since they do not perceive those as lucrative investment opportunities, it said.
The Bangladesh Securities and Exchange Commission withdrew floor prices from 169 issues last week but floor removal of the small-cap securities has no impact on the current market situation.
According to International Leasing Securities, the investors remained cautious about the macroeconomic challenges amid the cloudy market outlook.
Sell pressure in IT, services, and paper and pharmaceuticals stocks pushed down the prime index to more than four months low, said the stockbroker.
The IT sector lost 2.6 per cent, followed by services at 1.0 per cent and paper at 0.80 per cent.
Most of the traded issues remained unchanged. Of the 313 issues traded, 136 declined, 17 advanced and 160 remained unchanged on the DSE trading floor.
Intraco Refueling Station became the turnover leader with shares worth Tk 128 million changing hands, followed by Bashundhara Paper Mills (Tk 86 million), Bangladesh Spinning Corporation (Tk 85 million), Pragati Life Insurance (Tk 84 million) and Genex Infosys (Tk 78 million).
Newly listed Islami Commercial Insurance was the day’s best performer, gaining 9.90 per cent while Orion Infusions was the top loser, losing 8.73 per cent.
The pharma sector kept its dominance in the turnover chart, capturing 48.50 per cent of the total day’s turnover, followed by IT with 8.80 per cent and paper with 7.80 per cent.
The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) losing 25 points to settle at 18,279 and its Selective Categories Index (CSCX) shedding 14 points to close at 10,951.
The port-city bourse traded 2.97 million shares and mutual fund units with a turnover value of Tk 223 million.
