Investors yet to regain confidence on stock market

Although the market regulator BSEC tried to cheer investors by declaring an extended credit facility, participation was mostly sluggish this week as investors are yet to regain confidence on the market.

BSEC imposed the interim rules of the circuit breaker with a lower limit of 2 per cent with a view to restoring market confidence.

In the past week ended on Thursday, the benchmark DSEX index was down 20.27 points to close at 6,237.

Stocks on the Dhaka bourse plunged on investors’ worries as the global economic outlook made them nervous to exert sell-pressure on the bourse., said the EBL Securities.

On the other hand Miscellaneous , Pharmaceuticals & Chemicals, Financial Institution sectors observed price appreciation while General Insurance, Tannery and IT sectors faced correction.

The market witnessed a sale dominated week and investors saw every short-lived bounce back in the market as an opportunity to sell. Average turnover declined by 24.49 per cent to stand at Tk 610 crore as against Tk 808 crore in the previous week.

Investors were active primarily in Miscellaneous (16.7 per cent), Pharmaceuticals & Chemicals (13.0 per cent), and Financial Institution (10.3 per cent) sectors.

Most of the sectors witnessed negative performance out of which General Insurance (-3.2 per cent), Tannery (-2.7 per cent), and IT (-2.3 per cent) observed the most corrections while Paper (5.6 per cent), Financial Institution (1.9 per cent), and Life Insurance (1.5 per cent) sectors observed some positive returns this week. Out of the 393 issues traded, 161 advanced, 195 declined, and 31 remained unchanged.

The week’s top pullers included SEML Lecture Equity Management Fund, Lub-rref (Bangladesh) Limited, GSP Finance Company (Bangladesh) Limited, Paramount Textile Limited, Renwick Jajneswar & Co (Bd) Ltd., VFS Thread Dyeing Limited, Quasem Industries Limited, National Feed Mill Limited, Silva Pharmaceuticals Limited, MIDAS Financing Ltd.

The week’s top draggers included Sonali Paper & Board Mills Limited, Bangas Ltd, Rangpur Dairy & Food Products Limited, Pioneer Insurance company Ltd., Eastland Insurance Company Ltd, Aramit Cement, First Security Islami Bank Ltd., Aman Feed Limited, NRB Commercial Bank Ltd, Dhaka Insurance Co Ltd.

The port city bourse, CSE, also settled in green terrain. The selected indices (CSCX) and all Share Price Index (CASPI) have advanced by 70.4 points and 118.4 points respectively.