Investors wary as monetary policy imminent

After four sessions of sharp fall, the ailing capital market recovered slightly Thursday, although investors were on guard, causing a huge decrease in turnover.

Jittery investors were seen offloading their holdings in order to safeguard their funds from further possible losses, while other investors cast a wary eye on market issues and thus remained aside the trading floor.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), advanced 5.3 points to settle at 6,280 against 6,275 points in the previous trading session.

Among other indices, the DS30, the blue-chip index, added 1.42 points or 0.06 per cent to close at 2,182, and the DSES, the Shariah-based index, rose 1.03 points or 0.07 per cent to 1,365.

Turnover, another crucial market indicator, fell to a 2 month-low with the DSE turnover dipping by 35.7 per cent day-on-day to Tk 465 crore.

The life insurance sector rose by 18.7 to become the top contributor of the total DSE turnover, followed by pharma (11.2 per cent) and food (10.1 per cent).

Bangladesh Shipping Corporation was the day’s turnover leader with Tk 23 crore worth of its shares changing hands, followed by Navana Pharmaceuticals, and Meghna Life Insurance.

Although the market minimised losses investors’ confidence was yet to be restored, said EBL Securities, a stockbroker, in its daily market review, adding that the market rose slightly owing to a marginal price gain in selective large-cap scrips.

Sellers outnumbered buyers as market confidence was yet to be restored owing to concerns regarding the market outlook ahead of the upcoming monetary policy, it added.

Sectors showed mixed performance, with the IT gaining the highest with a return of 1.5 per cent, followed by life insurance (0.7 per cent) and paper (0.6 per cent).

On the other hand, the travel faced the highest correction of 1.5 per cent, followed by ceramic (0.4 per cent) and mutual fund (0.1 per cent).

Apex Tannery Limited became the DSE’s top gainer by gaining 9.9 per cent, while Bangas Ltd suffered the most with a loss of 6.6 per cent. Out of the issues traded, 88 advanced, 62 declined and 242 remained unchanged.

The port city bourse, CSE, also settled on green terrain, with its two major indices – the selected indices (CSCX), and the all-share price index (CASPI) – advanced by 6.4 points and 12.4 points respectively.