DSE turnover surges 68% amid volatility

Dhaka stocks had a volatile session that ended almost flat today as they tried to halt the weeklong correction following the recent jump fueled by political optimism. 

Turnover the Dhaka Stock Exchange (DSE) jumped by 68% and bounced back to over Tk800 crore as both the buyers and sellers showed appetite for trading. 

The market started higher and DSEX, the broad-based index of DSE, surged by more than 100 points in the first hour. But, profit booking attempts did not let it sustain and the index closed 3.1 points lower at 5,775. 

“The benchmark index of the Dhaka bourse failed to stay afloat in green territory despite a slight positive start to the session as cautious investors maintained their sell dominance amid the prevailing volatility and shaky confidence across the trading floor,” wrote EBL Securities in their daily market commentary. 

“Investors remained watchful of the market’s trend and preferred to trim their holdings in particular trendy scrips due to the current volatility, causing the broad index to close in negative territory for three consecutive sessions,” it added.  

Analysts said, as investors await a continuation of tighter monetary policy, many preferred booking some of their recent profits from large cap stocks. 

Blue chip index DS 30 fell by 0.26% to 2,121.  

On the sectoral front, banking stocks together made over 25% of the DSE turnover today, followed by pharmaceuticals and telecommunications. 

Sectors mostly displayed dismal returns, out of which telecommunication, life insurance and the non-bank financial institutions suffered the maximum corrections as their market capitalisation declined by 2.9%, 2.1% and 1.6% respectively. 

On the other hand, jute, travel and banking sectors led the winners as their market capitalisation increased by 3%, 0.7% and 0.4%, respectively. 

Out of the 397 stocks, mutual funds and corporate bonds, 118 advanced, 245 declined and 34 remained unchanged. 

CSCX, the broad-based index of the Chittagong Stock Exchange (CSE) closed 0.6% lower at 10,006. Turnover in the port city bourse was 14% higher at Tk8.6 crore.