Turnover on the Dhaka Stock Exchange hit a 14-month low yesterday, as traders tried to familiarise themselves with the new and fast automated trading system introduced at the start of the session.

Subsequently, at the close of the day it stood at Tk 136.89 crore, down 67 percent from the previous day.

"We were using the previous trading system for the last 16 years and we became used to it. So, it will take us some time to

become familiar with the new and modern trading system, " said Shakil Rizvi, managing director of Shakil Rizvi Stock.

It was the main factor for the low turnover on the bourse, he said. "But the situation will improve gradually. There is nothing to worry about," said Rizvi, also a director of the DSE.

IDLC Investments, a merchant bank, in its analysis said the first day trading with the new platform closed on a flat note as the market tried to adapt.

DSEX, the benchmark index of the DSE, slightly declined by 10.69 points, or 0.21 percent, to finish the day at 4,993 points. DSES, the shariah index of the prime bourse, declined only 0.76 points, or 00.6 percent, to close at 1,115.39.

Earlier at 10:30am, the regular start time for trading sessions, State Minister for Finance MA Mannan formally launched the system at a function in Dhaka yesterday.

The newly introduced automated trading system will enhance the exchange's technological capability, improve transparency and offer the lowest latency in matching stock transaction orders.

The new system will allow the DSE to introduce new products and separate trading platforms for equity and debt securities, which was not possible in the previous system.

It will also support the bourse's market expansion

programme and will, over time, propel the exchange to the leading position in the multi-asset regional marketplace.

Addressing the function, the state minister said the DSE's upgrading with the new automated trading system will help the government strengthen its digitalisation programme in other areas too, such as trade and commerce, agriculture and society.

"The private sector is the engine of economic growth and we need strong support from you," he said, while assuring of an investment-friendly environment.

M Khairul Hossain, chairman of the Bangladesh Securities and Exchange Commission, said foreign investors are now considering the country's stockmarket as a lucrative option after the positive changes brought in the regulatory body and the exchanges. "The stock exchanges have already been demutualised. That will ensure good governance," he said, adding that the commission will gradually introduce derivatives and commodities.

DSE Chairman Justice Siddiqur Rahman Miah said after demutualisation of the DSE they are trying to develop the exchange to world-class standards.

"Introduction of new products and many other developments are in our active consideration and this new automated trading system will help us execute the same. ”

Swapan Kumar Bala, managing director of the DSE, said the new trading system transforms the ability of the exchange to better serve the business requirements of financial intermediaries, both local and international.

"The new system will have multi asset class capabilities on a multi platform offering and we anticipate making further announcements in this regard over the coming months. The DSE is now proud to offer a world-class trading platform for issuer and investor intermediation."

Eight vendors have provided different components for the new trading system, which costs aroundTk 35 crore.

Of them NASDAQ OMX, the world's largest exchange company based in the US, provided the main part - matching engine - while FlexTrade Systems provided the order management system at the brokers' end.