The Financial Express

Investors reluctant to inject fresh funds

| Updated: October 22, 2021 09:59:06

Investors reluctant to inject fresh funds

Broad index of Dhaka Stock Exchange (DSE) closed the Sunday's session moderately lower extending the losing streak for fifth consecutive session.

The broad index declined 2.53 per cent or 181.53 points in last five sessions in a row.

On Sunday, majority number of listed securities saw price correction as investors showed reluctant approach to inject fresh funds following continuous falling trend of the market.

The major sectors which played role behind Sunday's correction include financial institutions, fuel & power, general insurance, pharmaceuticals & chemicals and telecommunication.

The market opened the day's session positively and the DSE broad index DSEX displayed almost a flat movement for two hours.

After the mid session, the DSEX started to decline and no recovery stance was observed till closure.

Finally, the DSEX settled at 7186.46 points with a loss of 0.78 per cent or 56.80 points.

Shariah based index DSES declined 1.34 per cent or 21.11 points to close at 1546.31 points.

DS30 index comprising blue chip securities closed at 2705.13 points with a loss of 0.51 per cent or 14 points.

According to a market review of International Leasing Securities, Dhaka stocks witnessed another big fall as the shaky investors continued profit booking sell offs on large cap sectors.

"Investors preferred to remain on the sideline and observe the market's movement before taking fresh investment decisions," the review said.

It said heavy sell pressure was observed in general insurance, paper, IT, mutual fund and pharmaceuticals sectors.

Of 376 issues traded, 65 advanced, 287 declined and 24 were unchanged on Sunday.

On the day, the DSE posted a turnover of Tk 16.55 billion which was 15.44 per cent higher than the turnover of previous session.

Of total turnover, Tk 191 million came from transactions executed in block board.

According to another market review of EBL Securities, most of the stocks experienced correction as the absence of any major trigger in the market has enticed investors to engage in continuous sell-offs.

"Many investors were reluctant in fresh investments due to consecutive corrections," the review said.

Of major sectors which saw price correction, engineering declined 0.9 per cent, financial institutions 2.5 per cent, fuel & power 1.9 per cent, general insurance 2.4 per cent, pharmaceuticals & chemicals 1.5 per cent, telecommunication and textile 2.0 per cent.

Of the sectors which witnessed price appreciation, bank advanced 1.1 per cent, paper & printing 1.2 per cent, tannery 3.6 per cent and miscellaneous 1.5 per cent.

Investors' participation was concentrated mostly on banking sector which grabbed 17.6 per cent of market turnover followed by pharmaceuticals & chemicals 13.1 per cent, tannery 8.5 per cent, textile 7.5 per cent and fuel & power 6.7 per cent.

Fortune Shoes topped the scrip wise turnover chart with a value of Tk 1.34 billion followed by IFIC Bank Tk 1.17 billion, Orion Pharma Tk 1.03 billion, LafargeHolcim Bangladesh Tk 908 million and NCC Bank Tk 799 million.

South Bangla Agriculture & Commerce Bank was the number one gainer with a rise of 9.95 per cent to close at Tk 21 each.

Orion Pharma was the worst loser after declining 9.54 per cent to close at Tk 104.20 each.

CASPI, benchmark index of Chittagong Stock Exchange (CSE), declined 0.44 per cent or 94.19 points to close at 21022.52 points on Sunday.

Of 310 issues traded, 78 advanced and 206 declined and 26 were unchanged and the port city bourse CSE posted a turnover of Tk 638.25 million.

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