Stocks end flat amid low turnover
However, most of the large-cap companies, mainly held in institutional portfolios, ended into red territory on Tuesday
Stocks passed a volatile trading day on Tuesday with major indices on both the bourses remained almost unchanged at the closing. Turnover in public transactions remained dull.
DSEX, the broad-based index of the Dhaka Stock Exchange, managed to close at 0.03 percent higher while the blue-chip index DS 30 closed at 0.01 percent lower than the previous closing.
At the Chittagong Stock Exchange, the broad index CSCX closed at 9,140, gaining 0.003 percent over the previous session. CSE 30 increased by 0.23 percent while CSE 50 was down by 0.29 percent.
Market professionals said investors' anxiety is supposed to be the key reason behind indices' choppy movement. Investors are more concerned about the implementation and outcomes of the assurance given by the finance minister for boosting investors' confidence.
In recent weeks, hearing from all the capital market stakeholders, Finance Minister AHM Mustafa Kamal has come up with some supports including increasing market liquidity from the banking sector, and an amicable ending of ongoing audit claim dispute between the revenue authority and two leading telecom operators in the country -- Grameenphone and Robi.
However, Telecommunications Minister Mustafa Jabbar on Monday said, "There is no scope to downsize the audit claims from Grameenphone and Robi."
According to market analysts, the comment of the minister further hurt investors' confidence.
However, most of the large-cap companies, mainly held in institutional portfolios, ended into red territory on Tuesday, which indicates their reduced risk appetite.
Floor traders told The Business Standard that majority of the individual investors were more engaged with trendy small and mid-cap stocks that helped those stocks to dominate top charts for volume, gains, and losses.
They also said investors realised some gains steadily until the first 45 minutes. During the mid-session, the market underwent a selling pressure. For the rest of the session, the market moved sideways and closed the session flat.
At the Dhaka Stock Exchange, 183 scrips gained price while 113 lost and 56 remained unchanged. The gainer to loser ratio was similar at the Chittagong Stock Exchange.
Turnover at both the stock exchange came down sharply on Tuesday when compared to the previous session. Trade volume on the Dhaka bourse stood at Tk304 crore on Tuesday, which was Tk596 crore on Monday.
The volume spike on Monday was mainly caused by some huge block transactions of Bank Asia shares worth over Tk124 crore on the premier bourse.
Sectoral charts reveal pharmaceuticals, textile-knitting, fuel refinery, textile-spinning and plastics and packaging had the highest gain on Tuesday. On the other hand, general insurance, jute, telecommunication, life insurance, and tobacco sectors suffered the largest losses.
