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DSEX, the key index of the Dhaka Stock Exchange (DSE), on Wednesday saw a rise compared to the last working day before Eid-ul-Azha, but the turnover fell to a 16-month low on the first working day after the holidays.
DSEX went up by 43.57 points or 0.85 per cent to settle at 5,161.38 at the end of trading.
Two other indices also ended higher with the DSE 30 Index, comprising blue chips, rising by 22.25 points to finish at 1,844.13 and the DSE Shariah Index, DSES, advancing by 13.25 points to close at 1,121.31.
Meanwhile, market participation remained sluggish, with total turnover falling to around a 16-month low, decreasing by 41.8 per cent to Tk 246.44 crore from the previous session’s Tk 423.14 crore.
Out of the 392 issues, 232 gained, 96 declined and 64 remained unchanged at the end of the day’s trading at DSE.
DSE observed lacklustre trading in the first session after the Eid holiday as investors preferred to remain on the sidelines, although the market observed a slight recovery, aided by price appreciation in the majority of stocks, said EBL Securities in its daily market review.
The indices stayed upbeat throughout the session, with opportunistic investors taking positions on sector-specific issues, driven by positive expectations. However, cautious investors remained observant in the absence of any major catalysts to counter the prevailing pessimism pervading the trading floor, it added.
Capital market analyst Abu Ahmed said that the first turnover after Eid usually remains a bit low. There is nothing to worry about the decrease in turnover and indices.
However, the proposed national budget for FY2024-25, which has not provided any facilities for the capital market, could be one of the reasons for the decrease in turnover on the first working day after the Eid holidays. In the budget, the corporate tax rate has been reduced for companies outside the capital market. As a result, IPOs are also likely to see a decrease in the coming days, he said.
Abu added that for those who keep the Beneficiary Owner's Accounts (BO) active or invest in the capital market just to apply for an IPO, there is a possibility that they could exit the capital market and that could lead to a worse situation.
On Wednesday, most of the large-cap sectors posted positive performance at DSE.
Engineering booked the highest gain of 4.43 per cent followed by Pharmaceutical 2.09 per cent, Food and Allied 1.16 per cent, NBFI 0.53 per cent, Fuel and Power 0.46 per cent, Bank 0.20 per cent, while only Telecom 0.5 per cent exerted marginal corrections.
On the sectoral front, Pharma issues exerted the highest turnover (18.1 per cent), followed by General Insurance (11.5 per cent) and Textile (10.2 per cent).
Block trades contributed 5.5 per cent of the overall market turnover. Crystal Insurance Company Limited (+0.8 per cent) was the most traded share with a turnover of Tk 11.6 crore.
Meanwhile, the Chittagong Stock Exchange (CSE) also closed the day with an upward trend with its major CASPI rising 61.23 points and settling at 14, 608.47.
At the CSE, 145 issues were traded on Wednesday. Of those, 53 closed higher and 71 closed lower while 7,95,000 shares worth about Tk 6.88 crore changed hands.
Trading at DSE and CSE was closed for five days for weekly holidays and the Eid vacation. The last day of trading was held on June 13.
