Stock Market Caught in Cycle of Price Fall: Lowest Turnover at DSE in 13 Working Days

The downward trend in the country’s stock market continues, with investors facing consecutive losses. Maintaining the continuity of the previous working day, share and unit prices of most institutions fell on the Dhaka Stock Exchange (DSE), the country’s main capital market, on the last working day of the week, Thursday, 4 December. This price fall resulted in a decline across all price indices of the DSE. Simultaneously, the transaction volume in the market decreased significantly, marking the lowest turnover in the last 13 working days. A similar scenario was observed at the other capital market, the Chittagong Stock Exchange (CSE), where share prices of most institutions fell along with the price indices, although the transaction volume there increased slightly.

Analysing the market movement of the current week, it is evident that there was a major price fall on the DSE during the first two working days. However, on the third working day, the market turned around slightly, and an upward trend was observed. Yet, this positive trend did not last long; the price fall resumed on the fourth working day, Wednesday. On Thursday, trading began with an increase in the prices of shares and units of most institutions, causing the index to appear upward initially. However, the market picture changed completely before half an hour of trading had passed. Institutions that were seeing price hikes one after another moved to the list of price decliners. As time progressed, the magnitude of the fall increased, and eventually, the day’s trading ended with lower prices for the majority of institutions.

A summary of Thursday’s trading at the DSE is presented in the table below:

Amongst the good companies or institutions providing 10 per cent or more dividends, share prices of 18 increased, while 168 decreased, and 28 remained unchanged. Amongst medium-quality companies or those providing less than 10 per cent dividends, prices increased for only 6, decreased for 67, and remained unchanged for 3. The DSE’s main price index, DSEX, fell by 40 points to stand at 4,927 points. The DSE Shariah index fell by 9 points to 1,024 points, and the DSE-30 index, comprising 30 selected good companies, fell by 6 points to 1,891 points. Transaction volume also dipped. Turnover at the DSE on this day was 364 crore 37 lakh Taka, which is 41 crore 4 lakh Taka less than the previous day’s 405 crore 41 lakh Taka. This is the lowest turnover since 17 November or within 13 working days. Simtex Industries, BD Thai Food, and Shahjibazar Power were the top traded companies.

Khaborwala/ASN