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Stocks slipped into the red on Sunday in the first post-budget session, as it appears to have failed to have failed to cheer up investors’ confidence.
The growing tension over the Covid-19 scare and the floor price mechanism also kept the investors worried.
Finance Minister AHM Mustafa Kamal unveiled the budget for the FY 2020-21 on Thursday allowing undisclosed money to invest in the stocks although analysts say such moves failed to bring expected results in the past.
Market operators said the proposed budget has brought no cheers for stock investors, who have been battered by a prolonged slump in indices, but promised measures to develop the country’s bond market.
The Finance Minister proposed to reduce the corporate tax gap between listed and non-listed companies which they think would discourage good non-listed firms from going public.
Many investors were also cautiously analysing the proposed budget before making any further investment decisions, said a leading broker.
DSEX, the key index of the Dhaka Stock Exchange, went down by 3.02 points, or 0.07 per cent, to close at 3,929.
The DSE core index has been hovering at 3,960 points in the last few sessions, as most of the investors are reluctant to make any fresh investment in stocks amid the worsening situation of the deadly virus.
The market turnover slumped to Tk 539 million, a 5.50 per cent higher than the previous day, as investors were not showing any enthusiasm about buying shares due to the waning Covid-19 pandemic.
Lack of institutional buyers, coupled with current floor price limitation, is preventing many investors from buying and selling shares at desired prices, which is a major reason behind the low turnover, said an analyst.
The stock market regulator imposed the floor price on March 19 for all stocks on the basis of the average price of the last five days to stop the massive fall of the index amid the virus scare.
Most of the shares remained stuck at the trading floor and very few buyers came and picked some of the offered shares.
Of the issues traded, 247 remained unchanged while only 27 issues advanced and 24 declined on the DSE trading floor.
DS30 index, comprising blue chips, also fell 2.72 points to finish at 1,329 and DSE Shariah Index saw a fractional loss of 0.23 point to close at 919.
A total number of 14,760 trades were executed in the day’s trading session with a trading volume of 27.36 million shares and mutual fund units.
The market-cap of the DSE also inched down to Tk 3,105 billion from Tk 3,106 billion in the previous session.
Beximco Pharma topped the turnover chart with shares worth Tk 43 million changing hands, followed by Bangladesh Submarine Cable Company, Reckitt Benckisher, Central Pharma and Indo-Bangla Pharma.
ICB Employees Provident Mutual Fund One was the day’s best performer, posting a gain of 9.68 per cent, while Beximco Synthetics was the worst loser, losing 8.47 per cent.
Chittagong Stock Exchange edged lower with its All Shares Price Index (CASPI) losing 7.71 points to close at 11,259 and the Selective Categories Index (CSCX) shedding 4.50 points to finish at 6,821.
Of the issues traded, 16 gained, 22 declined and 63 remained unchanged on the CSE.
The port city bourse traded 1.70 million shares and mutual fund units worth Tk 25 million in turnover.