Dhaka stocks continue to bleed

Dhaka shares dropped for the 2nd consecutive session on Tuesday, however the turnover elevated as a piece of buyers have been lively on each side of the buying and selling fence with sellers ending up within the dominant place, mentioned market operators.

DSEX, the important thing index of the Dhaka Inventory Alternate, misplaced 0.15 per cent, or 9.42 factors, to shut at 6,180.27 factors on the day as towards 6,190 factors within the earlier buying and selling session.

The turnover on the DSE rose by 35.6 per cent and stood at Tk 269.58 crore on the day in contrast with that of Tk 198.80 crore within the earlier session.

Monday’s turnover was a 29-month lowest after July 7, 2020 when it was at Tk 138.56 crore.

The market opened Tuesday’s session upbeat, however failed to take care of the vibe and ended within the unfavourable trajectory as buyers went for revenue reserving in late buying and selling, the market operators mentioned.

They mentioned that share costs of about one-thirds of the listed firms declined and that of one-third remained caught of their ground costs.

The Bangladesh Securities and Alternate Fee on December 21 eliminated ground costs from 169 firms that upset buyers as they misplaced confidence available in the market, the market operators mentioned.

Buyers now apprehended that the BSEC may withdraw ground costs from the opposite firms too, they mentioned.

The BSEC on July 28 imposed ground costs on all firms to stop share costs of the businesses from falling past a sure degree.

The extended bearish sentiment in the marketplace had stored buyers engaged in continued sell-offs within the absence of any main set off for the market to bounce again, the market operators mentioned.

The nation’s financial system has been struggling in latest months with a bunch of points, together with inflation, greenback disaster, strain on foreign exchange reserves, commerce deficit and power disaster, they mentioned.

EBL Securities in its every day market commentary mentioned, ‘Dhaka shares continued to bleed for the reason that withdrawal of ground costs from sure scrips has put additional pressure on the ailing market.’

‘The market witnessed a downward momentum all through the session, whereas a last-hour shopping for spree on selective points supplied a marginal restoration to the core index,’ it mentioned.

Buyers are taking a wait-and-see strategy forward of the year-end since there may be but no optimistic set off for the market to bounce again from the extended bearish sentiment, it mentioned.

‘Furthermore, the 1 per cent decrease circuit breaker for sure scrips has curbed market liquidity as a result of the present costs couldn’t appeal to cut price hunters since they don’t understand these as profitable funding alternatives,’ it mentioned.

On the sectoral entrance, prescription drugs and chemical substances points exerted the very best turnover, adopted by IT and paper shares.

Many of the sectors displayed dismal returns, out of which IT, companies and paper exerted probably the most corrections on the bourse on Tuesday, whereas ceramic, life insurance coverage and monetary establishments exhibited marginally optimistic returns.

Out of the 313 points traded on Tuesday, 136 declined, 17 superior and 160 remained unchanged on the DSE.

The DS30 index elevated by 0.43 factors to complete at 2,191.44 factors and the DSE Shariah index declined by 1.77 factors to shut at 1,352.34 factors on the day.

Intraco Refueling Station topped the turnover chart with its shares price Tk 12.83 crore altering palms.

Bashundhara Paper Mills, Bangladesh Delivery Company, Pragati Life Insurance coverage, Genex Infosys, Monno Ceramic, Orion Infusion, Sea Pearl Seaside Resort and Spa, Orion Pharma and ADN Telecom have been the opposite turnover leaders on the day.