Liquidity crisis brings down DSE turnover to 34-day low

Liquidity crisis brought down the turnover of Dhaka Stock Exchange (DSE) to a 34-day low on Wednesday as most of the investors remained on the sideline amid shaky confidence.

On the day, the DSE turnover dropped 21% from the previous trading session to Tk257 crore.

However, the share transaction value in the block market increased 43% to Tk63 crore, which was 25% of the total DSE turnover.

Market analysts say that there is an opportunity to buy shares at a lower price than the floor price in the block market.

Using this opportunity, shares of Square Pharma worth Tk16 crore were traded on Wednesday. So, transactions in the block market increased.

Meanwhile, DSEX, the benchmark index of DSE, inched down to settle at 6,218 points while the Chittagong Stock Exchange's all share price index (CASPI) slightly fell to 18,360 points.

Due to the lack of investors, only 36 scripts advanced at the DSE, while 120 declined and 152 remained unchanged.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse failed to recover from its recent correction mode as sell pressure continued to mount in the latter part of the session, eroding the early-hour gains since investors perceived that as an opportunity to offload their holdings in the face of unclear market momentum.

The market started on a positive note despite some volatility as investors anticipated a favourable outcome from the regulator's meeting with IOSCO considering the current market scenario. However, morning optimism failed to sustain as cautious investors preferred to partially liquidate their positions and remain on the sidelines amid shaky confidence across the trading floor, it added.

Shinepukur Ceramics was the top turnover company at the DSE, which was followed by Bangladesh Shipping Corporation and Genex Infosys.

Life insurance sector dominated the top ten gainers chart, while Rupali Life Insurance secured the top position with 5.83% share price hike.

Bangladesh General Insurance shares faced the most selloff as investors were selling it to book capital gain which was created by the recent rally.