DSE turnover slumps below Tk500cr after 3 months

Investor participation in the Dhaka Stock Exchange (DSE) slumped further today (23 September), dragging daily turnover below Tk500 crore for the first time in nearly three months.

The total turnover fell by 14.2% to Tk467 crore from Tk544 crore in the previous session, reflecting heightened caution among market participants.

Despite the slump in turnover, the market snapped a four-day losing streak as bargain hunters picked up beaten-down stocks, allowing the benchmark DSEX to edge up 10 points to 5,347. The blue-chip DS30 index also rose slightly, adding 0.67 points to settle at 2,072.

Out of 395 issues traded, 233 advanced, 101 declined, and 61 remained unchanged. However, overall market capitalisation declined by Tk1,300 crore, highlighting lingering weakness across most scrips.

Infograph: TBS

Brokerage house EBL Securities, in its daily market commentary, noted that the index was cushioned by mid-session bargain hunting after consecutive sessions of correction. The rebound, however, was fragile as the market remained volatile throughout the day amid a lack of decisive catalysts.

"Late-session buying provided some support as opportunistic investors targeted stocks trading at lucrative price levels after the recent downturn," the review stated.

Market insiders continued to link the subdued mood to the recent controversy surrounding a National Board of Revenue (NBR) letter that sought information on individuals with capital gains exceeding Tk50 lakh. The Bangladesh Securities and Exchange Commission (BSEC) forwarded the letter to stock exchanges without a thorough review, creating widespread concern among investors.

Special Assistant to the Chief Adviser Anisuzzaman Chowdhury, addressing a seminar at the DSE Tower in Dhaka on Sunday, criticised the market's reaction. He said, "Regarding a simple NBR letter on Tk50 lakh capital gains, the market has blown it out of proportion. This is part of regular internal work. 

"The NBR has a deadline of 31 October to compile updated tax income data. Such a reaction is not acceptable."

He further stressed that no allegations of irregularities were raised and urged investors to behave more responsibly.

Market observers cautioned that unless regulatory clarity and investor confidence are restored, the volatility and low turnover could persist in the coming sessions despite bargain-hunting support, according to insiders.

Banking stocks, particularly Social Islami Bank, Union Bank, Global Islami Bank, Exim Bank, and First Security Islami Bank, came under sustained pressure as concerns grew over possible mergers.

A managing director of an asset management company warned that, following global practice, investors might face losses rather than gains in the event of forced mergers of weaker banks.

On the sectoral front, pharmaceuticals accounted for the highest turnover at 14%, followed by textiles at 13.9% and banks at 10.4%. 

Among individual scrips, Summit Alliance Port, Khan Brothers PP Woven, Fareast Knitting, Sonali Paper, and Salvo Chemical led the turnover activity.

Most sectors displayed positive returns, with paper (3.9%), ceramics (2.7%), and IT (2.3%) leading the way. 

On the downside, services and banks each declined by 0.5%, while food fell by 0.1%. 

Crown Cement emerged as the day's top gainer, soaring by 9.94%, followed by CAPM BDBL Mutual Fund (9.70%), Peoples Leasing (9.09%), Hami (8.67%), and Salvo Chemical (8.46%). 

Hamid Fabrics, however, tumbled by 10% after announcing the closure of its factory due to gas supply shortages. Other notable losers included Zaheen Spinning (-9.67%), Exim Bank (-9.37%), Baraka Power (-9.09%), and Social Islami Bank (-8.33%).

The Chittagong Stock Exchange (CSE) also ended in the red, with the CSCX index dropping by 30 points to close at 9,243 and CASPI losing by 53 points to 15,025. Turnover at the port city bourse stood at Tk12.70 crore.