Stocks rise but turnover falls to 8-month low

Dhaka stocks rebounded on Tuesday after a two-day loss, as some investors bought the oversold. But the trading activity continued to plunge as the DSE turnover sank to an eight-month low ahead of the year-end adjustment and Omicron fear.

At close, the market lost half of the gains seen in the early hours due to profit-booking selling on the insurance sector that flexed muscle in the previous two sessions.

The benchmark DSEX index shed 20 points or 0.30 per cent to settle at 6,757, hitting a high of 6,792, lifted mainly by jute, non-banking financial institution, and miscellaneous.

The Shariah-based DSES index rose about 4 points or 0.27 per cent at 1,436 while the blue-chip comprising DS30 index was up 9 points 0.38 per cent at 2,538.

Turnover declined by 19.22 per cent to Tk 652 crore—its lowest since April 4, 2021 when it was Tk 602 crore. The miscellaneous sector accounted for over 20.25 per cent of the total turnover.

The low-cap companies continued to shine since last week when the stock market regulator Bangladesh Securities and Exchange Commission (BSEC) instructed 64 low-cap companies to raise their paid-up capital to Tk 30 crore within June next year.

Out of the top ten gainers, nine came from the low paid-up companies. Fine Foods was the top gainer hitting the upper limit circuit at 10 per cent, followed by Sonali Aansh Industries, Monn Agro and General Machinery, NTC, Desh Garments, Apex Foods, AMCL (Pran), and Wata Chemicals.

“Indices of Dhaka stock exchange settled higher due to price increase of some large capital-based companies but participation observed considerable fall on the bourse,” said EBL Securities in a note.

Amidst the ongoing pessimism over the regulatory tussle, turnover declined to eight-month low as most of the investors were reluctant to make fresh investments in the market, it said.

Gainers marginally outpaced the losers as out of the 378 issues traded, 176 advanced, 147 declined, and 55 remained unchanged.

The worst losers included Hwa Well Textiles (BD), Bangladesh National Insurance Company, Sonali Paper, Asia Insurance, and Sena Kalyan Insurance Company. 

Beximco Ltd was the most traded stock with shares worth almost Tk 102 crore, followed by One Bank, Eastern Lubricants, IFIC Bank, GSP Finance and SAIF Powertec.

The port city bourse, CSE, also settled in green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) advanced by 48.6 points and 84.2 points respectively.