Home ›› 27 Nov 2021 ›› Stock
The two-week gaining spree on the Dhaka Stock Exchange was broken in the past week as the benchmark DSEX index plummeted 240 points.
Fears of the political and economic uncertainties, widening trade deficit, rising inflation, and bad loans have dented investor sentiment, dealers say.
The index, which opened the week at 7,091, declined 3.38 per cent to settle at 6,852 points at the week’s closing session.
Two other indices also ended the week in red as the blue chip comprising DS30 index shed 92 points or 3.42 per cent to settle at 2,602 and Shariah DSES index fell 37.95 points or 2.56 per cent to 1,442.
All the indices were in red in most of the trading sessions of the week.
Meanwhile, daily average turnover plunged 9.82 per cent in the week from Tk 1,398.5 crore to Tk 1,261.3 crore
During this week, CSE30, CSCX and CASPI indices of the port city bourse lost 432.5 points, 399.5 points and 665.0 points respectively. Market insider said the market was marred with panic sales throughout the week.
The cautious investors remained in the selling mood due to consecutive price correction as they feared that the benchmark index may fall down further, said International Leasing Securities in its weekly market reviews.
The liquidity scenarios in the money market is tightening and on-going rise in inflation rate is expected to adversely impact macroeconomic indicators. As a result, investors engaged in panic driven sales throughout the week, said EBL Securities.
Initiatives to inject fresh funds in the market through institutional investors failed to dissuade investors from liquidating their holdings, it added.
During the whole trading week, the banking sector witnessed the highest turnover but observed price correction of 4.7 per cent over the last week.
Political uncertainty and intensified student protests over bus fare accelerated the market fall in the past week, said a top stockbroker.
Critically sick Khaleda Zia, the 76-year-old leader of the Bangladesh Nationalist Party and arch-rival of the ruling Awami League, has been barred by a court from traveling abroad, generating political uncertainty. The government has already directed the police to remain on “red alert” across the country so that no individuals can create “chaos and unwanted situation”.
Among the sectors – travel and leisure (3.5 per cent), service and real estate (2.3 per cent) and food and allied (0.3 per cent) sectors achieved price appreciation while tannery (-7.5 per cent), life insurance (-7.5 per cent) and jute (-5.1 per cent) sectors witnessed price correction during this week.
The investors’ activity was mostly focused on bank (37.4 per cent), textile (10.5 per cent) and miscellaneous (9.3 per cent) sectors while Beximco (8.3 per cent), One Bank (8.3 per cent) and IFIC (4.8 per cent) were on top of the weekly scrip-wise turnover board.
Newly listed company ACME Pesticides was the top gainer at Dhaka bourse in terms of closing price increased. Its share price increased 6 per cent in last week.
Sena Kalyan Insurance, another newly listed company, was the second top gainer as its share price increased 59 per cent. LR Global Bangladesh Mutual Fund and Kohinoor Chemical was the top loser at Dhaka bourse in last week as their share price declined 21 and 18 per cent respectively.
Last week, Bangladesh Securities and Exchange Commission (BSEC) directed the listed companies and mutual funds to deposit their undistributed bonus dividends into the designated Beneficiary Owners (BO) account of the Capital Market Stabilisation Fund (CMSF) by January 15.
The Appellate Division of Supreme Court has ordered the suspension of manufacturing and selling of aggregates by Lafarge Holcim Bangladesh Limited for two weeks.
Earlier on November 16, the High Court Division had allowed the sale in an interim order. But the Appellate Division on Tuesday stayed the High Court order for two weeks.
