DSEX breaks three-day losing streak, but turnover remains low
However, daily turnover remained subdued, reflecting low investor participation
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) ended its three-day losing streak today (26 December), gaining 15 points to close at 5,184.
However, daily turnover remained subdued, reflecting low investor participation.
The DSEX surged by 0.29%, while the blue-chip DS30 gained 0.22% to close at 1,927. Of the traded securities, 187 advanced, 128 declined, and 81 remained unchanged, indicating a mixed performance across the bourse.
EBL Securities, in its daily market review, said trading activities on the DSE remained stagnant, with market turnover staying below the Tk300 crore mark. The day's daily turnover stood at Tk282 crore.
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Talking to The Business Standard recently, Ashequr Rahman, managing director of Midway Securities, noted that the secondary market continues to be sluggish due to a lack of investor confidence.
"Despite holding funds, they are hesitant to actively participate in the market. Most investors are adopting a wait-and-see approach, refraining from entering the market unless specific events compel them to act," he added.
EBL Securities said the prime index of the Dhaka bourse logged a slight recovery owing to some last-hour buying activity in sector-specific scrips, while overall investment appetite remained subdued as most investors clung to a bleak market outlook.
Market volatility persisted throughout the session as cautious investors shied away from taking positions in equities due to the enduring pessimism pervading the trading floor, although selling pressure has somewhat eased down with subtle price appreciation in sector-specific issues that provided a cushion to the ailing market, it added.
Investor sentiment was further dampened by regulatory actions from the Bangladesh Securities and Exchange Commission (BSEC), which recently issued letters to several brokerage houses for investigations, according to a managing director of a brokerage firm.
He also pointed out that the commission's letters did not contain any specific allegations to justify the regulatory inspections, raising questions about the purpose of these investigations.
Another managing director suggested that the BSEC's investigations seemed to target brokerage houses whose top officials have been critical of the regulator's actions from time to time.
Meanwhile, most of the sectors displayed mixed returns, out of which non-bank financial institutions, jute and fuel and power exhibited the most gains on the bourse, while paper, IT and mutual fund exerted the most corrections.
HR Textile led the gainers' list, with its share price surging 9.32%, followed by Beacon Pharma, Legacy Footwear and Power Grid.
Mercantile Insurance was the top loser, with its share price dropping 10%, followed by Jamuna Oil, S Alam Cold Rolled Steels and BIFC.
Investors showed the highest activity in the pharmaceutical sector, which accounted for 23.7% of the DSE's total turnover, followed by the banking sector at 11.8% and the engineering sector at 11.3%.
Orion Infusion was the top-traded stock in terms of value. Its shares worth Tk18 crore were traded, followed by Oimex Electrode and Bangladesh Shipping Corporation.
