DHAKA stocks experienced a second consecutive day of decline amid volatility, as investors maintained a cau- tious approach due to con- cerns over political tensions in the country ahead of the national election, market operators said.
DSEX, the key index of the Dhaka Stock Exchange, lost 0.60 points, or 0.00 per cent, and settled at 6,275.22 points on Sunday after los- ing 6.64 points on October 26.
Market operators said that as the national election was approaching, the politi- cal arena was witnessing a surge in political tensions.
They said that the height- ened political tensions ahead of the national elec- tion kept investors cautious on the trading floor.
The investors were close- ly monitoring the market, opting for a cautious ap- proach due to the fear of political tensions, they said.
The market would have faced a significant fall on Sunday due to the current nervousness over po- litical tensions, but it fell marginally as floor price restriction prevented sharp fall in share prices, they added.
In July 2022, the Bang- ladesh Securities and Exchange Commission imposed the floor price restriction on all companies to prevent an excessive fall in stock prices amid economic worries.
The turnover on the DSE increased to Tk 413.43 crore on Sunday compared with that of Tk 378.15 crore in the previous trading ses- sion."
Market operators said that lack of confidence among investors was the reason for their limited par- ticipation in the market and also increased caution.
Besides, the country’s economy has been strug- gling in recent months with various challenges, includ- ing high inflation, dollar cri- sis and energy crisis, which have kept the market muted, they added.
EBL Securities in its daily market commentary said. The premier bourse of the country registered a mere flat session in the first session of the week as cau- tious investors continued their profit-booking and portfolio rebalancing in response to the latest earn- ings disclosures of the listed companies amid uncertain market momentum stem- ming from the prevailing macroeconomic and politi- cal concerns."
The equity indices ob- served a flat movement throughout the session as sellers continued their cautious selling approach, while some opportunistic investors preferred to take positions in sector-specific issues with quick gain po- tential surrounding the on- going corporate earnings declarations, it said.
Moreover, the resurgence of political movements and the countrywide political strike induced shaky confi- dence among investors re- garding the market outlook ahead of the upcoming na- tional election impacted the market, it added.
On the sectoral front, food issues exerted the high- est turnover, followed by general insurance and phar- maceutical stocks.
Out of the 297 issues traded on Sunday, 57 ad- vanced, 91 declined and 149 remained unchanged.
The DSE Shariah index lost 0.60 points, or 0.04 per cent, to close at 1,361.90 points on Sunday.
The DS30 index de- creased by 0.51 points, or 0.02 per cent, to finish at 2,135.04 points on the day.
Gemini Sea Food PLC topped the turnover chart on the day with its shares worth Tk 38.38 crore chang-ing hands.
Fu Wang Food Ltd, Sea Pearl Beach Resort & Spa Limited, Samorita Hospital Limited, Sonali Aansh In- dustries Limited, Delta Life Insurance Company Ltd, Emerald Oil Industries Ltd, Eastern Housing Limited, Alif Industries Limited and Miracle Industries Ltd were the other turnover leaders.
Source: Daily New Age