Stocks dismal, turnover too

Dhaka stocks extended the bearish trend this week also as investors were reluctant to put fresh funds in new issues anticipating a dismal market forecast owing to the macroeconomic strains and bleak earnings disclosures by the listed companies.

Investors rather stayed sidelines in the absence of a major trigger in the market, while many of them liquidated their holdings to save their funds from the ailing market.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 51 points or 0.8 per cent to settle the week at 6,215.

Among other indices, the DS30, the blue-chip index, lost 10.24 points or 0.47 per cent to close at 2,189, while the DSES, the Shariah-based index, fell 10.08 points or 0.74 per cent to finish the week at 1,354.

The average turnover declined by 31.5 per cent to Tk 414 crore at the DSE this week against the figure of Tk 604 croe in the previous week.

The market performed five sessions his week.

The market started on a negative note with a loss of 0.81 per cent on Sunday, and remained negative on Monday by giving up 0.39 per cent.

It, however, turned positive on Tuesday with a gain of 0.64 per cent, but again lost 0.37 per cent on the following day.

The market closed slightly higher with a gain of 0.12 per cent on Thursday.

Investor participation fell substantially across the bourse this week as the majority of the scrips remained stuck at their floor prices, limiting the liquidation opportunities for the investors, said EBL Securities, a stockbroker, in its daily market review.

Financial sectors posted mixed performance this week with the life insurance sector booking the highest gain of 1.58 per cent, followed by mutual fund, according to the Brac-EPL, a stockbroker.

On the other hand, the general insurance sector suffered the most with a loss of 0.2 per cent, followed by bank (0.11 per cent), NBFI (0.07 per cent).

Non-financial sectors also posted mixed performance at the premier bourse with the food & allied sector bookingh the highest gain of 0.06%, followed by the telecommunication.

On the contrary, the pharmaceutical sector experienced the highest loss of 1 per cent, followed by engineering (0.25 per cent), and fuel & power (0.03 per cent).

Investors were mainly active in the IT sector (18.0 per cent), followed by pharmaceutical & chemicals (17.3 per cent), and life insurance (15 per cent) sectors, according to the EBL Securities.