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Massive sales pressure in DSE


The market went down steeply Sunday (20 October, 2013), the opening day after 9-day holiday, and the DSEX dipped below 3,800 points mark once again, as investors went for massive sell-off amid growing uncertainty in the political arena.

The prime index of the Dhaka Stock Exchange (DSE) – DSEX – came down below 3,800 points mark, shedding 71.87 points or 1.86 per cent and recorded the four and a half months’ lowest mark of 3,771.68 points.

The DS30 Index, comprising blue chips, also went down steeply, losing 28.92 points or 2.08 per cent to close the session at 1,359.02 points.

Trading activities remained sluggish and the total turnover on the DSE amounted to only Tk 1.10 billion, down by 49.68 per cent over the previous session’s value. It was the 10 months lowest turnover since Tk 1.01 billion on January 21.

“This low turnover means buyers and sellers are at disagreement. Buyers are bidding for lower price, and since the companies are trading at an attractive valuation level, sellers are not willing to sell at the lower price,” said a stock broker.

“Over imminent turmoil in political frontier and condensed fear on it fuelled this downbeat after long closure,” IDLC Investments, said in its regular market analysis.

Additionally, investors’ faded confidence fostered this downhill amid panic sale. As a result, turnover declined by 49.68 per cent from the previous session, added the merchant bank.

“The steep index slope falling like a waterfall is nothing abnormal for the day’s market, as the bourse reflected investors lack of participation, since most of the people are still on Eid vacation outside the city,” stated Zenith Investments.

Hopefully the day’s scenario is within a very limited timeframe, and the market is expected to rebound quite soon when full-fledged daily businesses will resume, the analysis said.

“After a long streak of holidays, the market is either set to move forward or investors may again adopted wait and see strategy due to some upcoming political agenda,” it added.

Market operators said institutional investors remained on the sideline because of the dismal turnover in the last few weeks, while investors’ confidence remained low. The bourse needs higher turnover to boost investor confidence.

The losers took a strong lead over the gainers, as out of the 278 issues traded, 229 declined, 28 advanced and 21 remained unchanged in the prime bourse.

Activities also decreased in the prime bourse. A total of 0.041 million trades were executed with 31.31 million shares and mutual fund units changing hands.

The market capitalisation of the DSE stood at Tk 2,427.42 billion against Tk 2,464.17 billion in the last session before the Eid vacation.

Newly listed Bangladesh Building Systems became the top turnover leader with shares worth Tk 68.47 million changing hands, followed by Argon Denim, BSCCL, JMI Syringes and Medical Devices and Square Pharma.

Trust Bank was the day’s highest gainer, posting a rise of 4.09 per cent, while Fine Foods was the day’s worst loser, slumping by 28.69 per cent, following its corporate declaration of only 2.0 per cent stock dividend.

The indices of the Chittagong Stock Exchange (CSE) also declined sharply, with its Selective Categories Index lost 125.75 points to close at 7,368.42 points.

The losers beat the gainers 165 to 18, with eight issues remaining unchanged at the port-city bourse that traded 3.93 million shares and mutual fund units, with Tk 120.34 million turnover value.


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