Stocks end flat after extreme volatility

Dhaka stocks ended flat on Wednesday after extreme volatility ahead of the announcement of a monetary policy statement by the Bangladesh Bank.

The trade kicked off on a positive note in the morning but moved between positive and negative several times throughout the entire trading day.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) edged 7.87 points or 0.12 per cent higher to close at 6,350 after hitting a high of 6,371 and a low of 6,342.

The DS30 index saw a fractional gain of 0.59 point to finish at 2,295 while DSE Shariah Index (DSES) index witnessed a fraction loss of 0.24 points at 1,385.

The central bank will unveil the Monetary Policy Statement for the fiscal year 2022-23 on Thursday. 

“Dhaka stocks ended the day with a gain, but volatility continued on the trading floor as investors adopted a cautious attitude in light of the possibility of tighter monetary policy for FY2023,” said the EBL Securities in a note.

On the sectoral front, engineering (15 per cent) issues exerted the highest turnover followed by textile (14 per cent) and pharmaceuticals (13.4 per cent) stocks.

Out of the 381 companies traded on the DSE, 157 advanced, 172 declined, and 52 remained unchanged.  

Turnover stood at Tk 805 crore, which was 1.60 per cent lower than the previous day’s tally of Tk 818 crore.

Investors’ concerns prevail due to increased import costs and currency volatility, and the central bank continued to release dollars into the market, which may lead to a shortage of liquidity in the money market, according to EBL Securities.

Most of the sectors displayed dismal returns, out of which paper (4.2 per cent), jute (1.3 per cent), and bank (0.8 per cent) generated some positive returns while ceramic (-1.6 per cent), services (-1.2 per cent) and miscellaneous (-0.7 per cent) exerted the most negative returns on the bourse.

Anwar Galvanizing was the most-traded stock with shares worth Tk 34 crore changing hands, closely followed by Shinepukur Ceramics Tk 27 crore, Beximco Tk 23 crore, BD Finance Tk 21 crore and Fu-Wang Food Tk 21 crore.

Newly listed Meghna Insurance was the top gainer, posting a 9.78 per cent gain followed by Intraco Refueling Station Limited posting 9.61 per cent, Ambee Pharmaceuticals 8.74 per cent while Progressive Life Insurance was the day’s worst loser, losing 1.99 per cent.

The Chittagong Stock Exchange (CSE) also posted a modest rise with the CSE All-Share Price Index – CASPI –gaining nearly 27 points to settle at 18,690 point and the Selective Categories Index – CSCX –rising nearly 16 points to close at 11,203 point.

Of the issues traded, 135 declined, 116 advanced and 48 issues remained unchanged on the CSE.