Trading turnover on the Dhaka Stock Exchange fell below Tk500 crore for the first time in five months today (27 August), while the benchmark DSEX gained 15 points amid subdued investor participation.
Turnover fell 8% to Tk467 crore, its lowest since 16 March. The last time DSE turnover was below Tk500 crore was on 6 April, according to DSE data.
Despite the liquidity crunch, the DSEX rose 15 points, or 0.26%, to 5,655, recovering after several sessions of losses. Market breadth was slightly positive, with 185 issues advancing, 144 declining and 64 remaining unchanged.
Market analysts from EBL Securities noted that the downbeat capital market attempted a reversal in the final session of the week after remaining in the red for several days.
“Selective buying emerged following recent sharp corrections; however, investor participation remains stagnant due to subdued confidence,” the brokerage firm stated in its daily review.
The brokerage said the market has yet to fully benefit from potential catalysts, including monetary easing following the recent policy rate cut, a favourable resolution of margin rules and the government’s commitment to stimulus measures for struggling firms.
However, persistent domestic headwinds continue to constrain the market’s recovery, keeping investors cautious, it said.
The textile sector led turnover, accounting for 29.2% of total trading volume. Banking followed with 10.9% and general insurance 10.3%.
Engineering led sectoral gains, rising 1.2%, followed by life insurance and banking. Ceramics recorded the steepest decline at 1.2%, while mutual funds and tannery stocks fell 1.1% and 0.5%, respectively.
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