Stocks end flat in volatile trade

Dhaka stocks closed on a flat note on Monday after experiencing extreme volatility, as investors were worried about the market direction.

The trading also opened flat in the morning and oscillated between red and green several times until the close of the trade.

At close, the benchmark DSEX index rose marginally 12 points or 0.18 per cent to settle at 6,978, hitting a low of 6,937 and a high of 6,988.

The Shariah-based DSES index gained 3 points or 0.24 per cent to 1,464 while the blue-chip comprising DS30 index edged over 3 points 0.13 per cent down to 2,634.

Rally in low cap stocks led by IT, Jute, textile, tannery, food, and cement offset the losses led by marginal fall in some large sectors such as telecommunications, insurers, NBFI and pharmaceuticals.

Bears ruled over the bulls due to concerns over the political and economic front, said a dealer.

Investors were active on both sides of the trading fence, as risk-averse investors chose to book profits on rising equities, while others continued to take position sector-specific stocks, said the EBL Securities in its note.

Amid the dull market, Sena Kalyan Insurance operated by Bangladesh Armed Forces continued to rise for the 22nd straight session hitting the upper limit circuit at 10 per cent. Since its debut on November 7, it rose around 700 per cent on its face value of Tk 10.

In response to a DSE query about its abnormal price hike, the company replied that there was no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares.

Most other insurers closed in red led by Northern Insurance that shed more than 4 per cent, followed Meghna Cement Mills, Fareast Finance and Investment Ltd, Mercantile Insurance, ICB Third NRB Mutual Fund and Asia Insurance.

The most traded stocks included Beximco Ltd, Genex Infosys, First Security Islami Bank, Sena Kalyan Insurance, One Bank, Maksons Spinning and Sonali Paper.

The port city bourse, CSE, however, settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) declined by 10.7 points and 13.2 points respectively.