Stock market off to slow start

Stocks opened the week with a sluggish trend in indices on Sunday. 

None of the major indices of the Bangladesh's two bourses – Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) – witnessed a significant change.

Turnover at DSE decreased by over 6 percent on the opening session of the week, compared to the last session of the previous week.

Analysts believe the slow pace in the last four trading sessions is a natural consequence of the previous two-day sharp rise. Many short-term traders are trying to book profits, they said. 

Moreover, according to them, there is an ongoing portfolio rebalancing by investors for which they are buying up shares with higher potential and selling other stocks. 

Floor traders told The Business Standard that a large number of investors have faith in the government's continuing efforts – such as seeking funds to support the market – to restore confidence among investors. 

However, some analysts are skeptic about the possibility of an increase in banks' investment in stocks as they have been offered low-cost funds for a six-month period only. This tenure is not long enough for a successful bet in stocks, they opined.

DSEX, the broad-based index of the Dhaka Stock Exchange gained 0.16 percent and closed at 4,975 points, while the blue-chip index DS30 closed in red territory, losing 0.05 percent. The Shariah-based index, DSES, gained 0.09 percent. 

At the port city bourse, benchmark index, CSCX, gained 0.17 percent to close at 9,177 points, while the blue chip index, CSE30, witnessed an off trend gain of 0.41 percent. 

Turnover, a crucial indicator of the market, at DSE decreased by 6.7 percent from the previous day, to come down to Tk384 crore on Sunday. However, turnover at CSE increased from Tk15.83 crore to Tk20.20 crore. 

Losers outnumbered gainers at both bourses. At DSE, 192 scrips lost price against 125 gainers, while the price of 36 securities remained unchanged. In Chattogram, 119 scrips lost value against 97 gainers, while the price of 26 securities remained unchanged. 

The indices gained due to some large-capital companies' positive momentum that offset the losses of a higher number of small and medium capital companies' share prices. 

Sectoral scenario reveals banks, ceramics and tannery were the only sectors to gain market capital during the first trading day of the week. 

Among the rest, paper and printing, jute, IT, service and real estate, travel and leisure and general insurance lost over one percent in their market capital.