BBN file photo

Dhaka, Bangladesh (BBN) – The daily trade turnover on the Dhaka Stock Exchange (DSE) fell to six months low on Thursday as investors were reluctant to make fresh investment in stocks amid ongoing bearish trend.

Turnover, a crucial indicator of the market, stood at BDT 2.54 billion on the country’s premier bourse, slumping further by 9.60 per cent over previous day’s mark of BDT 2.81 billion.

It was the lowest single-day transaction since May 14 this year, when the turnover totalled a record BDT 2.51 billion.

Along with falling turnover, DSEX, the prime index of the Dhaka Stock Exchange (DSE), also went down by 1.87 points or 0.04 per cent to settle at 4,417, lowest in 42 months since June 27, 2016.

Market insiders said investors reluctant to make fresh investment amid lack of confidence while poor macroeconomic indicators, dearth of quality stocks and liquidity crunch exacerbated the ongoing confidence crisis among investors.

The financial sector remained volatile with liquidity crisis, soaring interest rate, huge non-performing loans and pressure on the exchange rate that spilled over into the capital market, they added.

Two other indices ended lower. The DS30 index, comprising blue chips, fell 9.59 points to finish at 1,498 and the DSE Shariah Index lost 8.30 points to close at 986.

The large-cap sectors showed mixed performance. Engineering booked the highest gain of 0.61 per cent, followed by financial institutions with 0.52 per cent and banking 0.44 per cent.

On the other hand, pharmaceuticals saw the highest loss of 1.78 per cent, followed by food with 0.93 per cent, telecom 0.35 per cent and power 0.34 per cent.

Gainers, however, took a strong lead over the losers as out of 353 issues traded, 203 closed higher, 94 ended lower and 56 remained unchanged on the DSE trading floor.

A total number of 96,469 trades were executed in the day’s trading session with trading volume of 97.06 million shares and mutual fund units.

The market-cap of the DSE also declined to BDT 3,373 billion on Thursday, from BDT 3,380 billion in the previous session.

Square Pharmaceuticals topped the turnover chart with shares worth BDT 94 million changing hands, closely followed by Beacon Pharma, Bangladesh National Insurance, Ring Shine Textiles and Standard Ceramic.

Al-Haj Textile was the day’s best performer, posting a gain of 9.54 per cent while Shepherded Industries was the worst loser, losing 5.92 per cent.

On the other hand, the Chittagong Stock Exchange also saw a slight decline with its All Shares Price Index (CASPI)—losing 1.21 points to close at 13,440 and the Selective Categories Index – CSCX –falling 0.08 points to finish at 8,151.

The gainers beat losers, as 119 issues closed higher, 77 ended lower and 34 remained unchanged on the CSE.