DSEX slips for second day

The broad index DSEX of the Dhaka Stock Exchange (DSE) slipped for the second consecutive day amid the floor price mechanism – which has been imposed on stocks to resist further fall amid economic uncertainty.

The DSE index rose in the early trading session on Tuesday. But the index fell compared to the previous day at the end owing to selling pressure. 

On Tuesday, the DSEX declined by 0.13% or 8.93 points to close at 6,384.

The EBL Securities said in its daily market review, investors' sell pressure was prevalent on the trading floor since dismal earnings disclosure from a majority of companies made them wary about the bleak market outlook amid the macroeconomic adversities.

The market started positively since the stock market regulator's meeting with the IMF did not bring any unfavourable outcomes for the investors. However, morning optimism started to fade by the mid-session since sellers dominated the trading floor as they chose to book profits from the recently rallied stocks due to prevailing concerns regarding the market outlook, the report added.

Nearly two-thirds listed scrips are not trading in the bourses of Dhaka and Chattogram because of the floor price and investors who need immediate exit are suffering from the lack of buyers at the artificially held price.

On the other hand, a large number of retail investors are thanking the individual scrip price floors that are saving their accounts from capital erosion.

Meanwhile, the Dhaka bourse observed a 21% hike in turnover than the previous day and stood at Tk1,495 crore on Tuesday.

On the sectoral front, pharmaceuticals and IT with nearly one-third jointly of the daily turnover in the Dhaka Stock Exchange demonstrated the strongest momentum as investors have been chasing technology stocks that showed earnings growth defying the overall corporate cost escalation and a threat of demand slowdown .

On Tuesday, the IT, jute and paper sectors suffered the biggest corrections.

Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) has rescheduled the trading time of the stock exchanges.

According to the BSEC direction, the stock market trading will start at 10:30am from 15 November and continue till 2:50pm. The current timing is 9:30am to 2:00pm.

From 15 November, the pre-opening time is fixed from 10:25am to 10:30am, while the post-closing time is fixed from 2:50pm to 3:00pm.