The Dhaka Stock Exchange (DSE) recorded the lowest turnover in 11 months on Sunday as most investors feared to enter the market amid global economic turmoil due to volatility the raw materials market and the rise in the prices of basic necessities.
The turnover amounted to Tk 393.97 crore, which is 26% less than the previous session. The previous lowest turnover was Tk 236 crore on April 5, 2021 at the country’s premier exchange.
“Retail and institutional investors are not investing in the bear market for fear of further losses. In addition, the participation of speculative traders is also low, so the transaction has declined,” said Md Moniruzzaman, Managing Director of IDLC Investments. Limited, to The Business Standard. .
“There is a lack of investment management professionals in our market. Therefore, the contribution of institutional investors to the stock market is not increasing,” he added.
Amid the weak turnover, investors’ selling sent stock indices of the DSE and the Chittagong Stock Exchange (CSE) plummeting on Sunday.
At the end of the session, the DSE’s key DSEX index lost 30 points to close at 6.554, while the blue chip DS30 index fell 5 points to 2.435.
Of the 379 issues traded at the DSE, 58 advanced, 280 declined and 41 remained unchanged.
The CASPI all-stock index of the port city CSE stock exchange also plunged 0.33% or 64 points to 19,302.
EBL Securities Limited said in its Daily Market Review that investor concerns loomed amid global economic turmoil due to commodity market volatility and rising commodity prices, leading to liquidity constraint. in the capital market because most investors are afraid to enter the market at the moment.
The prolonged pessimism kept investors inactive as they lost their appetite for risk-taking in the negative market, he added.
On Sunday, the miscellaneous sector contributed the highest revenue of 13.4% to the DSE, followed by the paper and pharmaceutical sectors.
Sonali Paper topped the turnover chart in terms of certificates and contributed 12.4% of total turnover, followed by Beximco Limited and Salvo Chemical.
Investors received the highest return from the telecommunications sector, followed by services and food, where paper was the largest loss-making sector in the DSE.
Beximco Pharma held the top position on the list of losers, where its share price fell 2% that day. The newly listed company JMI Hospital got the top spot on the list of winners at the first stock exchange.