The Dhaka bourse closed the week’s first session marginally lower, extending the losing streak for the third consecutive session as investors adopted a cautious stance amid fresh macroeconomic worries.
The Dhaka Stock Exchange (DSE) opened the day’s session positively, but shortly after its broad index, DSEX, failed to hold onto the momentum. By the end of the session, the DSEX lost 23 points to 5,859 points.
Of the total issues traded, 102 advanced, 247 declined, and 41 were unchanged. The DSE featured a turnover of Tk 11.31 billion.
The index movement in the last three sessions showed a similar pattern; early gains fading into decline.
Market insiders said the country’s macro economy was facing fresh challenges due to the energy crisis, which left investors in a dilemma about participating in the market.
The Strait of Hormuz, a major channel for global fuel export, is still closed, and the energy prices, after easing to the relief of global consumers, have moved back up. The finance minister on Sunday said it would take two years to resolve the ongoing fuel crisis. So, it was clear that there was no immediate solution to the problem. Also, there was no guarantee that inflation would not surge in the next quarter.
“This proves that the economy is not in a good situation, and business operations would be affected. That’s why investors are worried about the future market direction,” said Md Ashequr Rahman, managing director of Midway Securities.
The DSE witnessed daily turnovers between Tk 8 billion and Tk 13 billion in the last 14 sessions. The value still remains satisfactory following the sector-wise rotation of funds.
Market operators said the turnover values indicated that investors did not want to leave the market. Investors also have limited alternative investment instruments as returns from FDRs (fixed deposit receipt) declined.
However, turnover will fall if the market continues to show volatility for a prolonged period.
The price correction experienced by a majority of blue-chip stocks also played a role in Sunday’s index fall.
As a result, the DS30 index fell 0.38 per cent, or 8.51 points, to close at 2,184 points.
Of the 30 blue-chip stocks, 25 companies, including BRAC Bank, British American Tobacco Bangladesh Company, and Square Pharmaceuticals, plummeted on the day.
The stocks of the three companies were on the list of top index (DSEX) draggers.
Because of the sector-wise rotation of funds, general insurers on Sunday experienced the highest investor participation and grabbed 26.4 per cent of the market turnover.
Malek Spinning Mills was the number one turnover leader with a transaction value of Tk 313 million, followed by BEXIMCO, Samorita Hospital, and Sena Insurance.
Global Insurance was the number one gainer, with a rise of 9.82 per cent, while Far Chemical Industries was the worst loser after declining 8.07 per cent on the DSE.
