DSE turnover hits fresh 7-month low

May 26, 2014

Turnover at the Dhaka Stock Exchange hit a fresh seven-month low on Sunday as most of the investors, unnerved by the downward trend in share prices in recent weeks, refrained from trading. Turnover at the DSE declined to Tk 182.81 crore on Sunday from Tk 258.79 crore in the previous trading session. Sunday’s turnover was the lowest since October 21 last year when turnover at the bourse was Tk 167.11 crore.
DSEX, the key index of the DSE, lost 0.13 per cent, or 5.18 points, to close at 4,378.25 points on Sunday.
Of the 291 issues traded on the day, 128 declined, 120 advanced while 43 issues remained unchanged.
Market operators said investors, discouraged by a 282-point fall in the last four weeks, remained on the sideline on the day.
They said investors were also waiting for a court ruling over a legal battle over mandatory 2 per cent shareholding by listed company sponsor-directors.
The High Court on May 14 declared illegal a BSEC directive issued on November 22, 2011 that had
asked sponsor-directors of
listed companies to individually hold minimum 2 per cent shares of the paid-up capital of their respective companies.
The Bangladesh Securities and Exchange Commission took the matter to the Appellate Division, and its chamber judge on May 15 stayed the HC verdict setting May 22 for hearing by its regular court.
However, the market regulator’s appeal was not on the cause-list for hearing on Thursday.
Uncertainties following the finance minister’s announcement that the government ‘would not allow’ legalisation of undisclosed money in the upcoming budget also kept investors anxious, market operators said.
The finance minister, AMA Muhith, on May 8 and 9 said that they would not allow ‘whitening of black money in the upcoming budget.’
‘With shaky sentiment and apparent lack of direction, the market continued its ongoing trend and consequently declined the making turnover,’ IDLC Investment said in its daily market commentary on Sunday.
Participants remained passive and watchful throughout the session as the market situation is putting investors in a state of indecisiveness, it also said.
DS30, blue-chips index of the bourse, lost 0.14 per cent, or 2.23 points, to close at 1,587.37 points.
The DSE’s Shariah index, however, inched up by 0.07 per cent, or 0.71 points, to close at 973.63 points.
All the major sectors except telecommunication and pharmaceuticals closed negative on Sunday. Telecommunication gained 0.66 per cent and pharmaceuticals 0.45 per cent.
Food and allied declined by 1.34 per cent, power by 0.76 per cent, banks by 0.23 per cent and non-bank financial institutions declined by 0.72 per cent.
BSRM Steels topped the turnover leaders on Sunday with its shares worth Tk 8.44 crore changing hands.
The other turnover leaders were Lafarge Surma Cement, Square Pharma, Mercantile Bank, Grameenphone, Hwa Well Textiles and Meghna Petroleum.

-With New Age input

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