Stocks open on slow trend amid low turnover

Stocks witnessed a modest gain in early trading on Tuesday as investors are concerned over the worsening Covid-19 situation and the floor prices mechanism which kept the market almost inactive.

Within the first 30 minutes of the trading, DSEX advanced more than 2.0 points while the Selective Category Index of port city bourse gained 5.42 points at 11:00 am when the report was filed.

DSEX, the prime index of the DSE, went up by 2.48 points or 0.06 per cent to stand at 3,958 points at 11:00am.

Two other indices also gained marginally till then. The DS30 index, comprising blue chips advanced 1.22 points to 1,326. The DSE Shariah Index (DSES) gained 0.46 point to stand at 917 points.

Turnover, the important indicator of the market, stood at only Tk 105 million when the report was filed at 11:00 am.

Market operators said the lack of institutional buyers coupled with the current floor price limitation is preventing many investors from buying and selling shares, bringing turnover to a low.

“Under the existing system the buyers have not enough scope to purchase securities at their desired prices,” said a merchant banker.

Most of the shares were remained stuck at the main bourse due to floor price limitation and very few buyers came and picked some of the offered shares.

Of the issues traded till then, only 18 advanced, 7 declined and 173 remained unchanged as transactions take placed based on the floor price of the shares.

Meghna Petroleum was the most traded stocks till then with shares worth Tk 8.0 million changing hands, followed by GloxSmithKline, Square Pharma, Silva Pharma, and GP.

The Chittagong Stock Exchange also saw positive trend till then with its All Shares Price Index (CASPI)—gaining 8.62 points to reach at 11,241 and the Selective Categories Index - CSCX –gaining 5.42 points to finish at 6,810 at 11:00 am

Of the issues traded till then, 6 gained, 4 declined and 31 remained unchanged on the CSE with turnover of Tk 3.0 million.

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