Stocks pass a bearish week

The Dhaka Stock Exchange (DSE) has ended the past week in red terrain as the recent market volatility prompted investors to opt for a wait and see approach and refrain from pouring fresh money in stocks.

The benchmark DSEX index declined 94.59 points or 1.3 per cent to settle at 6,991 points in the week.

The junior indices also ended the week in red as the blue-chip comprising DS30 index dived 23.64 points or 0.91 per cent to 2,573 points and the Shariah-based DSES index fell 9.47 points or 0.62 per cent to 1,508.

The bourse’s average turnover also declined 9.8 per cent to stand at Tk 1,193 crore, which was Tk 1,324 crore in the previous week.

Out of 392 issues traded in the week, only 87 advanced while 280 declined and 19 remained unchanged.

“Recent market volatility has weakened the investors’ confidence and they preferred to either take a wait or see approach or opted for selling off their holdings to avoid further loss,” said EBL Securities in its weekly review.

Investors were mostly active in pharmaceuticals and chemicals (13.3 per cent), miscellaneous (12.7 per cent) and engineering (11.0 per cent) sectors.

Most sectors witnessed positive performances in the week. Of them, tannery (6.4 per cent), jute (4.2 per cent) and engineering (0.9 per cent) witnessed highest returns and general insurance (6.6 per cent), financial institution (-4.8 per cent) and services (-4.0 per cent) witnessed the most corrections.

Apex Foods turned out to be the top gainer of the week as its share price increased 30.54 per cent and its total turnover amount was Tk 30.73 crore.

Union Insurance was the week’s top loser as the newly listed company’s share price declined 16.49 per cent. Its total turnover amount was Tk 56.52 crore.

Fortune Shoes topped the turnover chart with a weekly turnover or Tk 501.65 crore.

Beximco Limited and Saqure Pharma were the week’s market puller and dragger respectively.

Weekly Highlights: IFIC Bank declared to sell its entire stake in the Nepal Bangladesh Bank to Sarika Chaudhary, a Nepalese resident, for more than NPR 618.70 crore.

Rahima Food Corporation says it will set up a new manufacturing plant and begin production of coconut oil from another plant under the management of the City Group.

C&A Textiles declared to raise Tk 50 crore in capital through the issuance of new shares. The company acquired by Alif Group last year.

Meanwhile, the CSCX index of Chittagong Stock Exchange declined 1.51 per cent to 12,472 and CASPI declined 1.49 per cent to 20,769 in the week.

The bourse’s average turnover stood at Tk 218 crore in the week while the market capitalization declined 1.03 per cent to Tk 5.61 lakh.