Confidence not return even after restoration of floor price in DSE

Mahfuja Mukul: The stock market of the country ended with a decline last week. However, the transaction has increased compared to the previous day. Due to the floor price on this day, it is not possible to reduce the share price of more than two hundred companies, even in such a situation, the index of Dhaka Stock Exchange (DSE) has decreased by more than 18 points. There were five times more companies that lost prices than companies that gained. Transactions have also increased. Selling pressure was higher than buying.
And those whose prices have increased; the rate of price increase is relatively low. But the prices of those that have decreased, the percentage has decreased much more.
The capital market was fairly relaxed in the previous week. After bringing back the share prices of 169 companies whose floor prices were lifted, not only did share prices and indices rise, but transactions also increased. But on the first day of this week, it is clear from the 25-point price drop, the confidence in the market has not returned.
The fourth working day of the week also saw declines, with only the food and accessory sector shares at the top of investor demand. On this day only investors in this sector were under pressure to buy shares. As a result, the share price in the discussed sector has increased. At the same time, the sector ranks fourth in terms of transactions. On the other hand, the share prices of all sectors except four sectors have decreased. On this day, share prices fell more in travel and leisure sector shares.
Market participants say that the capital market needs to be reformed. Governance needs to be fixed. Policies on margin lending, forced sales should be modernized. It can be seen that the forced sale comes when the market rises a little. So, they said that the margin regulation should be changed.
They say, forced sale will come even if the floor price is not raised. Once a forced sale comes, it will keep coming. Policies need to be specific in this regard. Besides, many people are not investing due to lack of confidence. It can be seen that if two days increase, three days decrease. No idea where to stop again. Even if you buy the shares of a good company, it is not possible to sell them. Therefore, the market is not able to normalize due to this, said the people concerned.
It can be seen from the market review, that the share price of the food sector, which has a lot of interest yesterday, increased by 0.10 percent. A total of 21 companies’ shares were traded in the sector on this day. 3 shares traded rose and 9 companies declined. Meanwhile, there was no change in share prices of telecommunication, bank, cement and mutual fund sectors yesterday.
Shares fell the most yesterday in the travel sector. In this sector, 3.90 percent share price has decreased. A total of 4 companies’ shares were traded in the sector. Out of these, 2 companies’ share prices fell and 2 were unchanged. The paper and printing sector was in second place with share price falling by 2.60 percent. The IT sector was at the third place in terms of share price decline. The share price in the sector fell by 1.80 percent.
On the other hand, in terms of transactions yesterday, the most transactions were in the insurance sector. The sector accounted for 26 percent of DSE’s total transactions. IT sector followed by 17 percent of DSE’s total transactions. Medicines and chemicals sector is in third place with 13.20 percent of transactions. The fourth-place food sector accounted for 12.10 percent of the total transactions of DSE.
According to the market review, transactions of Tk 607 crore 16 lakh were done on DSE. Shares worth Tk 563 crore 63 lakh were traded on DSE on the previous working day. On this day, the main index of DSE, DSEX, decreased by 18.58 points to 6,213.37 points. Besides, DSE-30 index decreased by 2.49 points and DSES index by 1.43 points to 2,215.17 points and 1,353.72 points respectively.
On the other hand, 6 crore 42 lakh shares were traded in Chittagong Stock Exchange (CSE). Shares worth Tk 7 crore 4 lakh were traded on the previous working day. Out of 170 companies traded in CSE on this day, share and unit prices increased in 14, decreased in 50 and did not change in 106.
On this day, the main index of CSE CASPI decreased by 40.65 points to 18 thousand 349.51 points. CSE-50 index decreased by 26.26 points and CSI by 84.04 points at 1,321.43 points, 10,999.76 points and 1,155.84 points respectively. In addition, the CSE-30 index increased by 2.96 points to 13 thousand 333.18 points.