DSE turnover tumbles to new low in new year

Dhaka stocks, as measured by the broader DSEX index, were on a decline throughout 2022 and the trend also continued in the new year.

DSEX dropped 11 points or 0.18 percent to close the first day of 2023 at 6,195 on Sunday. Other two indices — shariah-based DSES and blue-chip DS30 also fell on the day.

The Shariah-based DSEX shed 3.2 points or 0.23 per cent to 1,355 while the blue-chip DS30 dropped 1.6 points or 0.07 percent to 2,193.

Most strikingly, turnover, which is the value of shares traded, went down to a new low of Tk 178 crore indicating that market participation remains very poor.

Of the issues traded, 19 advanced, 149 declined, and 162 remained unchanged.

Stakeholders blamed the floor price, at which stocks can be sold, for the low turnover in the market for the last few months.

With this, after a promising end to 2022, the Dhaka bourse ended the first session of the new year with dismal performances by all major indicators.

Just as when investors were hoping for a revival, Sunday’s market movement came as a blow to investors.

Former president of the DSE Brokers Association of Bangladesh Ahmad Rashid Lali, in a TV interview, said that the floor price system should be recalibrated. He also suggested that the market regulator should give more authority to the DSE. The market needs business plan utilisation and more policy support, Lali further said.

Meanwhile, the port city bourse, Chittagong Stock Exchange (CSE), also settled on red terrain. All Share Price Index (CASPI) declined by 34 points to 18293 and securities worth Tk 10.42 crore were traded on the day. The selected indices (CSCX) declined by 20 points.