DSE turnover rises 17% amid struggling indices
The market witnessed a continuous struggle between buyers and sellers until the end of the session due to intense selling pressure from cautious investors
The turnover at the Dhaka bourse increased by 17% to Tk693 crore on Sunday, despite the equity indices coming down as worried investors continued to offload their holdings owing to the recent hike in energy prices.
The market witnessed a continuous struggle between buyers and sellers until the end of the session due to intense selling pressure from cautious investors.
A negative picture was continuously seen in the share price of gas-consuming companies following the announcement of an increase of up to 179% in the gas tariff for industries and power plants.
The DSEX, the premier index of the Dhaka Stock Exchange (DSE), declined by 9.5 points to settle at 6,256 on Sunday.
On the DSE, general and life insurance were among the top ten gainers, while manufacturing companies were among the top ten losers.
The session's turnover was contributed to by Genex Infosys, Bangladesh Shipping Corporation, Metro Spinning, Bashundhara Paper Mills, Aamra Networks, and Sea Pearl Beach Resort & Spa Ltd.
General insurance stocks had the highest turnover, followed by IT and pharmaceutical stocks.
Most of the sectors displayed dismal returns, out of which Paper, Services, and Ceramic exerted the most corrections, while only Travel and General Insurance exhibited some positive returns on the bourse.
Out of the 391 issues traded, 53 advanced, 126 declined, and 212 remained unchanged.
EBL Securities wrote in its daily market commentary that DSE's equity indices started the week on a gloomy note as worried investors continued to offload their holdings amid concerns over the dismal performance forecasts of the listed companies owing to the recent hike in fuel prices for industrial and commercial sectors.
EBL Securities analysts said the market witnessed a continuous tussle between buyers and sellers until midsession, followed by intense sell pressure from cautious investors who opted for portfolio rebalancing to shift towards specific stocks that they expect to be somewhat immune to earnings volatility caused by recent macroeconomic adversities.
On the sectoral front, general insurance contributed 20.9% and the IT sector 18.4% to the turnover.
The port city bourse, CSE, also settled on red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) declined by 13.2 points and 21.9 points, respectively.