Investors’ fears leave stocks downbeat

Snapping the gaining streak, Dhaka stocks tumbled this week as investors feared a sluggish economic output amidst the ongoing macroeconomic gasping, particularly higher inflation, depleting foreign exchange reserves, and declining bilateral trades.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plunged by 56.9 points or 0.89 per cent to settle the week at 6353.

The DS30, the blue-chip index, suffered 17.02 points to 2,236, and the DSES, the Shariah-based index, dropped 16.07 points to close at 1,385.

The average turnover, however, increased by 6.39 per cent to Tk 1,164 crore this week.

The IT sector reigned the turnover chart with a contribution of 17.17 per cent to the total turnover.

The market performed five trading sessions this week with a 0.08 per cent gain on the first trading session on Sunday.

But it turned negative by giving up 0.35 per cent on Monday. The market remained negative on both Tuesday (0.14 per cent loss) and Wednesday (0.53 per cent loss).

It, however, ended slightly upbeat with a gain of 0.06 per cent on Thursday.

The market observed see-saw trading throughout the week with sellers reigning on the trading floor as the majority of investors had bleak expectations regarding the market outlook because the rising import costs and the current dollar crisis were now hampering the business operations and profitability of many listed companies, said a stockbroker, in its daily market review.

All the financial sectors posted negative performance this week with the general insurance facing the highest loss of 3.49 per cent, followed by life insurance (1.04 per cent), non-bank financial institutions (0.16 per cent), mutual fund (0.03 per cent), and bank (0.20 per cent), according to Brac EPL’s weekly market commentary.

UCB Stock Brokerage said in the weekly market commentary that the IT, paper & printing and cement sectors closed positive this week, while travel & leisure, general insurance and jute sectors faced corrections.

Market insiders said that the market observed see-saw trading with sellers reigning on the trading floor as the majority of investors had bleak expectations regarding the market outlook because the rising import costs and the current dollar crisis were now hampering the business operations and profitability of many listed companies.

Meanwhile, the International Monetary Fund (IMF) put emphasis on automation and suggested building a stronger capacity of the capital market in Bangladesh which also let investors cautious about the future market forecasts.

The IMF made the recommendations during a meeting with officials of the Bangladesh Securities and Exchange Commission (BSEC) on last Monday at the BSEC headquarters in the capital.

Rahul Anand, mission chief for Bangladesh, Asia and Pacific department, led the IMF delegation in the meeting where BSEC Chairman Professor Shibli Rubayat-Ul Islam led the BSEC.

Following the meeting, BSEC Executive Director and Spokesperson, Mohammad Rezaul Karim told the media that it was a routine meeting, and the IMF discussed the overall infrastructure of the country’s capital market.

During the scheduled meeting, the IMF team suggested for products diversification in the stock market to ensure the involvement of people from all parts of society, Rezaul Karim added.

Out of the 398 issues traded, 34 advanced, 129 declined, and 223 remained unchanged on the trading floor of the Dhaka bourse this week.

Chartered Life Insurance Company was the week’s top gainer, advancing 60 per cent, while Indo-Bangla Pharmaceuticals was the week’s top sufferer, losing 16 per cent.

The port city bourse, Chittagong Stock Exchange (CSE), also closed lower this week with its two major indices – CSCX and CASPI – declining by 0.96 per cent and 0.96 per cent respectively.