Dhaka stocks dropped on Monday, the first trading day in the fasting month of Ramadan, after a gain in the previous trading session as most of the investors remained on the sideline amid economic worries in the country, market operators said.
They said that investors were reluctant to make fresh investments in the bearish market and usually the market remained dull during Ramadan.
DSEX, the key index of the Dhaka Stock Exchange, lost 11.38 points, or 0.18 per cent, and settled at 6,203.92 points after gaining 8.66 points on March 23.
The market was closed on Sunday on the occasion of Independence and National Day.
On Monday, trading on the DSE began at 10:00am and continued till 1:20pm as the Bangladesh Securities and Exchange Commission set the new trading hours for the month of Ramadan, the fasting month for the Muslims, which began on March 24.
Usually, the trading hours are from 10:00am to 2.20pm.
The market rose in early trading, but fell in the following hours to end Monday’s session in the red zone as most of the investors remained on the sideline on the day.
Multiple challenges, including inflation, rising external debts, foreign exchange market volatility, depleted foreign exchange reserves, a growing trade deficit and energy crisis forced most of the investors to remain on the sideline, the market operators said.
Besides, due to the floor price restriction system, a big amount of the investors’ investments was stuck in the market, they said.
Share prices of more than two-thirds of the companies remained stuck in their floor prices, they said.
The floor price system which the Bangladesh Securities and Exchange Commission introduced in July 2022 narrowed the access and exit options for investors, they said.
The turnover on the bourse decreased to Tk 328.48 crore on Wednesday against Tk 349.61 crore on March 23.
Legacy Footwear, Unique Hotel and Resorts, Intech Limited, Samata Leather, National Feed Mill, Aziz Pipes, Bangladesh Autocars, Tosrifa Industries, Rupali Life Insurance, and Prime Life Insurance were the top 10 gainers considering their closing prices on the day.
Islami Commercial Insurance, Monno Agro, Union Insurance, Sonali Paper, Dhaka Insurance, Meghna Pet, Premier Bank, One Bank, Metro Spinning, and Sea Pearl Beach Resort and Spa were the top 10 losers considering their closing prices on the day.
Among the sectors, travel issues exerted the highest turnover, followed by IT, and real estate stocks.
Almost all the sectors displayed dismal returns, out of which life insurance, tannery, and textile exerted the most correction on the bourse on the day.
Out of the 283 issues traded, 28 advanced, 72 declined and 183 remained unchanged on the day.
The DS30 index also decreased by 2.60 points to finish at 2,215.40 points and the DSE Shariah index declined by 3.56 points to close at 1,349.68 points on the day.
Unique Hotel and Resorts topped the turnover chart with its shares worth Tk 41.52 crore changing hands.
Eastern Housing, Sea Pearl Beach Resort and Spa, Bangladesh Shipping Corporation, Orion Pharma, Rupali Life Insurance, Genex Infosys, ADN Telecom, Shinepukur Ceramics, and Rangpur Dairy were the other turnover leaders on the day.
