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Regulatory decision fails to bring market into black

Staff Correspondent
03 Mar 2023 00:00:00 | Update: 03 Mar 2023 00:28:06
Regulatory decision fails to bring market into black

The fresh regulatory decision of the imposition of floor price failed to stimulate the market as the premier bourse Dhaka Stock Exchange (DSE) extended the correction trend for the second consecutive trading session on Thursday.

The securities regulator Bangladesh Securities and Exchange Commission (BSEC) on Wednesday reimposed floor prices for 169 companies and mutual funds to tame the free fall of the markets.

But, investors did not become optimist with the latest regulatory decision at a time when there has been no clear outlook centring the market rebound, analysts said.

The DSEX, the broad index of the prime bourse, edged down by 0.9 points to settle at 6,214 against 6,215 in the previous trading session.

Among other indices, the DS30, the blue-chip index, fell 2.05 points or 0.09 per cent to 2,216, and the DSES, the Shariah-based index, dropped 0.46 points or 0.03 per cent to 1,357.

Despite the regulatory efforts to restore confidence on the trading floor, including the reinstatement of floor prices on 169 scrips, investors continued booking profits and rebalance their portfolios to protect their funds, said EBL Securities, a stockbroker, in its daily market review.

Opportunist investors, however, continued their chase for sector-specific scrips with anticipation of quick gains since they expected positive momentum in the market in the coming days, it added.

Turnover, another crucial market indicator, also dropped by 5.5 per cent to Tk 427 crore yesterday against the tally of Tk 452 crore in the previous session.

The IT sector topped the turnover chart with a staggering contribution of 30.6 per cent to the total turnover of the DSE, followed by the life insurance (10.7 per cent) and the food (9.3 per cent).

Most of the sectors displayed mixed returns on the DSE trading floor, with the IT sector posting the highest return of 3.5 per cent, followed by life insurance (1.6 per cent) and paper (0.2 per cent).

On the other hand, the general insurance faced the highest correction of 0.9 per cent, followed by jute (0.6 per cent) and travel (0.3 per cent).

ADN Telecom Limited topped the gainer chart with a return of 9.9 per cent, while International Leasing & Financial Services Ltd was the day’s worst sufferer with a loss of 9.7 per cent.

Out of the securities traded, 72 advanced, 88 declined and 231 did not see any movement on the DSE trading floor.