Stocks finished flat amid roller-coaster trading yesterday as the political chaos continued to weigh on investors.
The market moved between positive and negative heavily as intraday volatility was nearly 40 points.
The benchmark index, DSEX, ended at 4,244 with slight rise of over 4 points or 0.1%, breaking four-day losing streak. The blue-chip comprising DS30 index fell 1 points or 0.09% to 1,467.
The Chittagong Stock Exchange Selective Category Index, CSCX, gained 14 points to close at 8,340.
Poor turnover continued to hit the Dhaka Stock Exchange as turnover stood at Tk475 crore, a fall of more than 5% over the previous session.
The lower turnover indicated that investors preferred staying on the sidelines amid apprehension over an economic slowdown caused by the long spell of blockades, according stock dealers.
“Four out of five trading days of this week were red. Gradually, market seems to change its mood from enthusiasm to cautiousness,” said Lanka Bangla Securities in its daily market analysis.
It said after a huge rally in November, investors seem to have gone to sidelines to assess the scenario.
“They feel if economic scenario gets into trouble due to prolonged political clashes, market valuations may start looking expensive.”
The country is going through long spell of blockades enforced by BNP-led 18-party alliance demanding national election under caretaker government.
“After encountering zigzags throughout the day, DSEX barely made it to the green zone in the day’s session,” said IDLC Investments.
It said the gloominess was quite natural, given that the perception regarding political and economic arena remained miserable.
Activities were rather slow too, as it became difficult to balance or rebalance portfolio amid this messy outlook, it said.
Nevertheless, a handful of stocks remained at the center of the attention, with ten scrips capturing 38% of the total turnover.
“The market outlook is likely to remain skewed, owing to the political crisis; however, since the market faced continuous correction coupling with profit taking, a few days of breathing space would act as a blessing for the investors,” said Zenith Investments.
Banks – the market bellwether outshined all the sectors with a marginal gain of 0.6%. Pharmaceuticals and NBFIs advanced 0.3% and 0.2% respectively. Whereas, energy and telecommunications edged lower.
Six textile issues featured in the top ten turnovers chart with Generation Next topping the list.
