DSE turnover squeezes to 102-day low
Their cautious approach squeezed the daily turnover at the major bourse 22% to Tk1,275 crore, the lowest since 19 July.
Amid increased market volatility, stock investors seem to be more watchful than pulling their trading triggers.
Their cautious approach squeezed the daily turnover at the major bourse 22% to Tk1,275 crore, the lowest since 19 July.
Many investors remained observant and opted for a sideline approach as they were seeking opportunities to rebalance their portfolio in the midst of corporate declaration season, EBL Securities wrote in their daily market commentary.
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Also, the number of trades and trade volume dropped by around 20% and 30% respectively.
DSEX, the broad-based index at the Dhaka Stock Exchange (DSE), which headed down before the Sunday close-ended a flat session on Monday to close at 6,998 points, only 2.9 points lower than the previous close.
"Cautious investors outperformed the bargain hunters' as the profit booking temperament on sector-specific stocks took the market index to close nearly flat," EBL Securities analysts added.
Shariah index DSES and the blue-chip Index DS 30 ended the day with 0.27% and 0.19% gains respectively as some selective stocks saw their demand.
Most of the non-selective stocks observed price correction on Monday following their most recent efforts to recover some of the price they lost in the previous leg of sharp correction.
Textile dominated the sectoral turnover chart as it contributed to a maximum 17.82% of the DSE turnover.
A stockbroker said some textile firms are disclosing earnings improvement, while some are still subdued. But the gross price appreciation of most textile stocks over the last few sessions attracted investors to trade more textile stocks.
"Actually, most of the investors, especially those who trade for a shorter term, are confused about the market direction," he added.
The Pharmaceutical sector contributed to over 11% of the DSE turnover on Monday.
Most of the sectors displayed mixed performance in terms of gaining or losing market capitalization. Tannery, paper and food led the winning sectors while ceramic, services and financial institutions were the biggest losing sectors in the DSE.
Out of the 376 issues traded, 133 stocks advanced, 205 declined, and 38 remained unchanged in the premier bourse.
Indices at the Chittagong Stock Exchange, however, closed slightly higher on Monday, while daily turnover came down to Tk43 crore from Sunday's Tk56.5 crore.
