Stocks dip, but Dhaka bourse turnover jumps 30%

The key indices of the stock exchanges plunged on Sunday as investors were most active on the selling side, contributing to a 30% increase in the Dhaka bourse turnover.

Most of the fundamental stocks, which were being traded above the floor price embargo, saw day traders selling out these shares to book quick gains.

The key index DSEX of the Dhaka Stock Exchange (DSE) lost 10 points, closing at 6,256, while the blue-chip index DS30 fell by 5 points to 2,101.

In addition, the Chittagong Stock Exchange (CSE) all-share price index CASPI also lost 8 points, closing at 18,574.

The daily DSE turnover jumped to Tk624 crore.

A total of 352 issues were traded, with 43 advancing, 131 declining, and 178 remaining unchanged at the DSE.

EBL Securities stated in its daily market review that the equity indices of the Dhaka bourse closed in the red territory due to dominant profit-booking sell pressure. Cautious investors preferred to realise their recent gains, being wary of the market momentum amid wavering confidence across the trading floor.

The market observed a downbeat vibe for the majority of the Sunday session as sellers remained predominant, while some optimistic investors continued their chase for particular trendy scrips in anticipation of quick gains, it added.

Investors were mostly active in the textile sector, followed by the pharmaceutical and engineering sectors, contributing 22%, 17.8%, and 16.9% to the total turnover, respectively.

Sectors ended with low gains, with the jute sector generating the highest 0.5% return, while the travel and leisure sector led the losers as its market capitalisation decreased by 2.1% on Sunday.

Evince Textile, which generated a stunning 10% return, topped the daily gainers table, followed by 1st Prime Finance Mutual Fund, Zaheen Spinning, Midas Finance, and Zahin Textile, whose stock prices increased by more than 8%.

The floor price continued to be a concern for the majority of investors, as most of the listed scrips had no buyer at or above the floor prices imposed by the securities regulator at the end of July 2022.

While the blue-chip stocks were either under selling pressure or stuck at floor prices, investors' participation was significantly concentrated among the trendy speculative scrips, mostly the shares of troubled companies.