Investors’ worries prolong as market shows no recovery hope

Dhaka stocks closed lower this week as investors preferred partial liquidation of their holdings and remained on the sidelines due to the market’s prolonged volatility and liquidity crisis.

The DSEX, the key index of the Dhaka Stock Exchange (DSE), the prime bourse, dropped 8.51 points or 0.14 per cent to settle the week at 6,206.

Meanwhile, the DS30, the blue-chip index, fell by 0.39 per cent to 2,209 points, while the DSES, the Shariah-based index, lost 3.92 points to 1,349.

The turnover of the capital bourse, however, surged by 16.28 per cent to average out at Tk 410 crore this week.

The IT sector reined in the turnover chart, with a contribution of 13.95 per cent to the total turnover of the DSE.

The market performed four sessions this week.

The market started on a negative note on Monday and remained the same on Tuesday as well.

It reverted to positive on Wednesday by gaining 0.06 per cent, and the market closed the week with a gain of 0.16 per cent on Thursday.

The capital bourse secured the losing streak for three consecutive weeks, with the benchmark index hitting a one-month low, as investors preferred partial liquidation of their holdings and remained on the sidelines due to the market’s prolonged volatility and liquidity shortage, said EBL Securities, a stockbroker, in its weekly market review.

Investors, however, were able to recover some of their losses in the week’s last two sessions as significant corrections made some selective issues lucrative to make some short-term gains again, it added.

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.

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.

Stockbroker BRAC EPL in its weekly market review said, financial sectors posted mixed performance this week, with the general insurance booking the highest gain of 0.32 per cent, followed by life insurance (0.13 per cent), and mutual fund (0.02 per cent).

On the other hand, the bank sector experienced the highest loss of 0.41 per cent, followed by NBFI (0.02 per cent).

The Non-financial sectors posted mixed performance this week, with the food & allied booking the highest gain of 0.11 per cent, followed by engineering (0.06 per cent), and telecommunication.

Meanwhile, the pharma sector faced the highest loss of 0.44 per cent, followed by fuel & power (0.06 per cent).

Out of the issues traded, 91 stocks advanced, 40 scrips declined, and 237 securities did not see any trading movement on the DSE trading floor this week.

Legacy Footwear was the topped the gainer list this week, by soaring 32 per cent while Shyampur Sugar Mills was the week’s worst loser, by losing 10 per cent.

The port city bourse the Chittagong Stock Exchange (CSE), also closed lower this week, with its prime index CSCX fell by 0.47 per cent close at 10962.