Home ›› 25 Mar 2023 ›› Stock
Stocks remained volatile this week as investors were active on both sides of the trading fence, but the sellers gained the upper hand ultimately.
The DSEX, the broad index of the Dhaka Stock Exchange (DSE), fell 4.9 points or 0.1 per cent to close at 6,215.
Among other indices, the DS30, the blue-chip index, lost 0.74 points to 2,218, and the DSES, the Shariah-based index, lost 3.60 points to 1,353.
The liquidity crisis deepened in the market, with the average DSE turnover falling by 30.63 per cent to Tk352 crore this week.
The pharmaceuticals sector topped the turnover chart, with a contribution of 12.56 per cent to the total turnover of the DSE.
The market performed five sessions this week with the market beginning with a 0.21 percent loss on Sunday. It also remained negative on Monday.
But the market reverted to positive on Tuesday by gaining 0.30 per cent, and it depreciated by 0.26 percent on the following day.
The market, however, closed on Thursday with a gain of 0.14 per cent.
The benchmark index of the capital bourse extended its losing streak for two consecutive weeks as investors preferred to take a cautious stance by staying on the sidelines and capitalizing on any short-term gain opportunities, said EBL Securities in its weekly market review.
In absence of a clear indication regarding the market’s momentum, investors’ confidence remained shaky, and they preferred to hold more cash positions rather than take long-term positions in equities, it added.
Talking to The Business Post on condition of anonymity, a high official of a top stock broker said in the context of a continuous price decline and bringing back the floor price for all shares every day, some shares are falling to their lower limits.
Officials of various brokerage firms said due to the closure of two consecutive banks in the United States, there has been a panic in the global economy, which has further affected the domestic stock market.
The managing director of a top brokerage house said that in the current situation, most investors do not have the ability to make new investments. Those who have securities in their hands are now trying to offload them for short-term profits or to avoid further losses.
Speaking to this correspondent, who sought to remain anonymous, the chief executive officer of a leading brokerage house said the country’s stock market has been suffering a severe liquidity crisis as investors could not participate in trading due to the price limit set on shares by the regulator to halt the free fall of the price indices.
Stocks have been on a losing streak amid a confidence crisis stemming from worries about the weakening macroeconomic situation coupled with rising inflation, he added.
He also said the prolonged bearish market condition, liquidity shortage, and lack of institutional participation altogether eroded investors’ confidence.
The stock bankers said liquidity in the market continued to be squeezed due to the floor price restriction as investors were reluctant to put fresh bets on stocks.
Investors were mostly active in the IT sector this week, followed by food, and life insurance.
Sectors ended in the mix this week, with the paper sector gaining the most of 2.6 per cent, while the IT sector witnessed the highest correction of 2.4 per cent.
Share prices of most companies have been stuck at their floor prices for a long time, making investors averse to liquidating their holdings, consequently creating a liquidity crunch in the market.
Out of the issues traded, 58 advanced, 63 declined, and 261 remained unchanged on the Dhaka bourse this week.
Legacy Footwear was the week’s top gainer, soaring 35 per cent while Bengal Windsor Thermoplastics was the week’s worst loser, losing 25 per cent.
