DSE triumphs a challenging week

The country’s premier bourse, Dhaka Stock Exchange (DSE), faced a challenging week as the key index, DSEX, lost 39.93 points or 0.64 per cent, closing the week at 6,220.24 points. The average turnover decreased by 21.4 per cent at Tk 508 crore with all financial sectors recording negative performance.

The market started in the negative by 0.37 per cent on Sunday and ended the week on a negative note by 0.02 per cent on Thursday.

EBL Securities said in its weekly market review that the market remained volatile throughout the week, with investors active on both sides of the trading fence. However, sellers finally gained the upper hand as the market did not experience a major trigger to sustain positive momentum considering the adverse effect of prolonged inflationary pressures in the economy.

Investors were mostly active in the IT sector, which dominated the turnover chart, covering 21.1 per cent of the total turnover. Although most sectors ended in the red, the food sector rose by 0.8 per cent, while the jute sector lost 5.6 per cent, making it the biggest loser of the week.

The Bangladesh Securities and Exchange Commission (BSEC) extended the time limit again for the ninth time for brokerage houses and merchant banks to reserve provisions against unreimbursed losses due to revaluation in their own and customer portfolios.

The stock market regulator-imposed floor prices on all securities on July 28, 2022, to prevent shares from falling beyond a certain level amidst domestic and global macroeconomic strains. However, this move has resulted in the share prices of most companies being stuck at floor prices for an extended period, creating a liquidity crisis in the market.

All the financial sectors registered negative performance this week, with general insurance experiencing the highest loss of 3.49 per cent, followed by life insurance at 3.33 per cent, mutual funds at 0.18 per cent, bank at 0.09 per cent, and NBFI at 0.00 percent.

Non-financial sectors posted mixed performances this week, with food & allied booking the highest gains of 0.83 per cent, followed by telecom at 0.00 per cent. Pharmaceuticals experienced the highest loss of 0.58 per cent, followed by fuel & power, and engineering, which decreased by 0.21 per cent and 0.11 per cent, respectively.

Out of the 400 issues traded, only 15 advanced, while 141 declined and 222 remained unchanged on the prime Dhaka bourse for the week.

Al-Haj Textile Mills Ltd was the week’s top gainer by price, soaring 11.86 per cent, while Rupali Life Insurance Co. Ltd became the top gainer regarding turnover, earning Tk 29 crore. Bangladesh General Insurance Company was the week’s top loser, losing 15.97 per cent.

The port city’s Chittagong Stock Exchange (CSE), also declined this week, with the CSCX falling by 0.52 per cent to 11001.7 points. Out of the 266 issues traded, 18 advanced, 83 declined, and 165 remained unchanged on the CSE for the week.

Despite the market’s overall negative inclination, the IT sector’s strong performance provided some hope for investors. The sector dominated the turnover chart, covering 21.1 per cent of the total turnover, which indicates investors’ confidence in the sector’s future prospects.