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Market ends dismal with majority stocks knocking floor prices

Staff Correspondent
01 Oct 2022 00:00:00 | Update: 01 Oct 2022 03:51:59
Market ends dismal with majority stocks knocking floor prices

Stocks in Bangladesh displayed a dismal show this week since investors preferred booking profits from the recently rallied scrips and stayed sidelines anticipating a bleaker economic outlook both on the global as well as domestic fronts.

Besides, the recent market corrections pushed a large number of stocks down to their floor prices, leading to decreased participation in the market and prompting investors to remain watchful.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE) plummeted by 0.78 per cent or 51.11 points to settle the week at 6,512.89.

Among other indices, the DS30, the blue-chip index, dropped by 1.49 per cent or 35.27 points to close at 2,330.42, and the DSES, the Shariah-based index, lost 17 points to 1,419.73.

The average turnover dropped by 27.74 per cent to Tk1,461 crore in the DSE.

The market performed five sessions this week.

Out of the five trading sessions this week, the market started on a negative note by giving up 0.74 per cent on Sunday. It remained negative in the next two sessions by losing 0.06 per cent and 0.34 per cent respectively.

However, it turned positive Wednesday by gaining 0.11 per cent and continued it on Thursday too by adding 0.25 per cent.

The miscellaneous sector topped the turnover chart with a contribution of 17.41 per cent to the total turnover.

Financial sectors posted mixed performance this week with non-bank financial institutions (NBFI) booking the highest gain of 0.44 per cent followed by the mutual fund.

General insurance suffered the most by giving up 0.95 per cent, followed by life insurance (0.60 per cent), and bank (0.08 per cent).

All the non-financial sectors registered negative performance this week.

Among them, fuel and power experienced the highest loss of 2.13 per cent followed by pharmaceutical (2.09 per cent), engineering (0.22 per cent), telecommunication (0.17 per cent), and food and allied (0.06 per cent).

The equity indices of the Dhaka bourse mostly experienced corrections this week since investors went on realising profits from the recently rallied stocks and stayed sidelines ahead of upcoming earnings declarations, said EBL Securities, a stockbroker, in its weekly market review.

Besides, the looming economic concerns both on the global and domestic fronts shattered their confidence, it commented.

Stock prices of 190 out of 387 companies on Tuesday had embraced their floor prices on the Dhaka Stock Exchange. Even, stock prices of six out of eight companies with a billion-dollar market cap each had also touched their floor prices on the premier bourse the same day.

The six companies were Grameenphone, Walton Hi-Tech Industries, British American Tobacco Bangladesh (BATBC), Square Pharmaceuticals, Robi Axiata, and Renata Limited.

Out of the 396 issues traded, 61 advanced, 173 declined, and 152 did not see any price movement on the trading floor of the DSE this week.

Meanwhile, the port city bourse, Chittagong Stock Exchange (CSE), also closed lower this week with its key indices the CSCX and the CASPI declining by 0.80 per cent and 0.80 per cent respectively. Out of the 317 issues traded, 59 advanced, 126 declined, and 132 remained unchanged on the CSE.