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Stocks fall again after single-day gain

Staff Correspondent
24 Nov 2022 00:00:00 | Update: 24 Nov 2022 01:09:03
Stocks fall again after single-day gain

Following declines in the first two days of the week, Dhaka stocks closed higher in the previous session but failed to hold an upward momentum and again closed in the red terrain on Wednesday.

Although the transaction volume increased slightly, there were very few buyers of shares of about three hundred companies, of which 66 companies had no buyers.

Shares of 230 companies changed very little at floor prices. Only 65 companies saw transactions above Tk 1 crore, while the number of companies that traded above Tk 1 lakh was 161.

While only six companies’ share prices fell on Tuesday, 63 fell on Wednesday. The share prices of 78 companies rose on Tuesday, but only 20 rose on Wednesday.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 22.8 points or 0.37 per cent and settled at 6,208 points as against 6,231 points in the previous trading session.

Among other indices, the DSES, the Shariah-based index, dropped by 5.9 points to close at 1,350, and the DS30, the blue-chip index, dropped 7 points to close at 2,183.

Meanwhile, the Dhaka bourse observed some increase in participation while the total turnover rose by 26.1 per cent and stood at Tk 540 crore as against Tk 428 crore in the previous session.

Equity indices of the Dhaka bourse failed to extend the upward momentum from the previous session as investors’ confidence in taking long-term positions in equities weakened, prompting them to liquidate their portfolios and sit on cash in the absence of a major trigger in the market, said EBL Securities in a note.

The market remained choppy throughout the session as investors were hesitant to make new investments due to their apprehension of a bleak market outlook, which was exacerbated by the recent dismal corporate earnings disclosure. Furthermore, investor participation has yet to recover across the bourse, as the majority of scrips remain stuck at the floor price, limiting liquidation opportunities in the market, it added.

On the sectoral front, pharma and chemical topped the turnover chart with a contribution of 19.8 per cent to the total turnover, followed by IT (17.6 per cent) and paper (14.3 per cent).

Most of the sectors displayed mixed returns on the Dhaka bourse.

Of them, the jute sector posted the highest return of 4.4 per cent followed by fuel and power (2.3 per cent) and paper (0.3 per cent).

On the other hand, the IT sector suffered the most with a loss of 4.3 per cent, followed by services (3 per cent) and travel (2.2 per cent).

Out of the 390 issues traded on the DSE, 21 advanced, 63 declined, and 306 did not see any price movement.

The port city bourse, Chittagong Stock Exchange (CSE), also settled on the red terrain with its two major indices — the selective categories Index (CSCX) and the all share price index (CASPI) — declining by 46.2 points and 76.3 points respectively.