Home ›› 05 Mar 2022 ›› Stock
The Dhaka Stock Exchange (DSE) has been stumbling for the third consecutive week. Russia’s escalating conflict with Ukraine further added to the investors/ woes in the week ended on Thursday.
The benchmark DSEX index shed more than 2 per cent or 143 points to end the week at 6,696.52 points while the average turnover fell 24.9 percent to Tk 750 crore.
According to stock dealers, the investors' participation fell drastically at the bourse as they took a sideline approach amidst ongoing market volatility.
Investors also tried to sell off their holdings as they were concerned about a market free-fall owing to geopolitical uncertainty and margin loan adjustment due to investment falling below the regulatory threshold, they said.
The junior indices also ended the week in red as the blue-chip comprising DS30 index dipped 52.04 points or 2.07 per cent to stand at 2,462.94 points while the Shariah-based DSES index went down 33.73 points or 2.29 per cent to 1,441.99 points.
Besides, market capitalization at the Dhaka bourse fell 2.17 per cent in the week. The DSE market value declined to Tk 5,38,427 crore on Thrusday, from Tk 5,50,355 crore of Sunday.
Market capitalization, or market cap, is calculated by multiplying the total number of outstanding shares with the current market price of its shares.
Out of the 391 issues traded in theweek, 55 advanced, 319 declined, and 12 remained unchanged.
All the financial sectors registered negative performance in the week. NBFI experienced the highest loss of 4.52 per cent wed by mutual fund’s 2.48 per cent loss, general insurance at 2.43 per cent, banks at 1.91 per cent, and life insurance at 0.84 per cent.
All the non-financial sectors also witnessed negative performance. Telecommunications lost the most (3.42 percent), followed by engineering (3.13 percent), fuel and power (2.12 percent), food and allied (1.85 percent), and pharmaceuticals (1.66 percent), according to BRAC EPL Stock Brokerage's weekly market commentary.
Another stock broker EBL Securities said the oil price in the global market, gas price in the EU market and the wheat future prices have been spiraling up since the invasion began which cast a distressing outlook for the global economy.
Apart from that, Bangladesh Securities and Exchange Commission (BSEC) has extended the negative equity adjustment period by a year to December 31, 2023. The previous deadline for the negative equity adjustment was December 31, 2022, said the regulator in a statement on Monday.
Negative equity was piled up during the 2010 market crash when the value of share prices fell below the prices bought by the investors with margin loans from the brokerage firms and merchant banks.
The negative equity stood at Tk 8, 673 crore as of September 2021, down from Tk 12,250 crore in 2020 and Tk 9,091 crore in 2017, according to the BSEC data.
Investors were mostly active in miscellaneous (18.9 per cent), textiles (13.4 per cent) and pharmaceuticals and chemicals (10.5 per cent) sectors. All sectors witnessed negative performances out of which ceramic (-8.3 per cent), cement (-5.7 per cent) and financial institution (-4.5 per cent) witnessed the most corrections.
The top 10 gainer companies by the closing price of all companies are Sunlife Insurance, Shurwid Industries, Takaful Islami Insurance, Fareast Islami Life Insurance, BD Thai Food & Beverage, Mozaffar Hossain Spinning Mills, Evince Textiles, Sonali Paper & Board Mills, Prime Islami life Insurance and ACME Pesticides Limited.
The top 10 loser companies by the closing price of all companies are NCCBL Mutual Fund-1, Crown Cement, RAK Ceramics, Aman Feed, Hamid Fabrics, Intraco Refueling Station, Unilever Consumer Care, South Bangla Agriculture & Commerce Bank, Associated Oxygen, and Saiham Textile Mills Limited.
