Bearish spell swept over the stock exchanges in the past week, as investors went for selling spree amid ongoing weak sentiment.
The benchmark index of Dhaka Stock Exchange, DSEX, dipped below the “psychological” threshold of 4,900-mark and closed the week at 4,899, dropping 85 points or 1.7%. It extended losses for the third consecutive week.
The comprising blue chips DS30 index lost 45 points or 2.5% to 1,814. The DSE Shariah Index fell 29 points or 2.5% to 1,146.
The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, was down 117 points or over 1% to settle at 9,254.
Participation in trading remained sluggish, as the weeks daily average turnover stood at Tk627 crore, a decline of 17% over the previous week.
Investors’ attention remained mostly concentrated on power, engineering and pharmaceuticals, together accounting for 56% of the week’s total value.
All the major sectors ended in negative territory in the past week except banks that saw marginal rise.
Telecommunication was the week’s worst loser, shedding more than 4%. Non-banking financial institutions and pharmaceuticals were also down 1.6% and 1.2% respectively. Fuel and power, and food and allied also closed negative.
“Market continued to slip amid shrinking turnover and weakening investors’ confidence,” said IDLC Investments in its weekly analysis.
It said newly listed small cap stocks were luring the investors, small caps exuberance is difficult to justify given some of the stocks that might have largely parted from fundamental value.
“A couple of new declarations from the fuel and power sector with positive earnings growth also hit the market, which was welcomed by the investors.”
Lanka Bangla Securities said after passing the week mostly under selling pressure, market showed lack of participation in early trading and closed in red.
It said investors remained cautious as market is yet to get any direction.
In macroeconomic front, news of increasing non-performing loan numbers hit the market which might require more provisioning next quarter.
International Leasing Securities said that the market continued a bumpy ride throughout the week’s trading as the investors were yet to make up their mind regarding the market’s turnaround.
“Pessimism among the investors regarding the entire market situation dragged the market’s turnover.”
Jamuna Oil Company dominated the week’s top turnover chart with shares worth Tk209 crore changing hands followed by Western Marine Shipyard, DESCO, Khan Brothers and Barkatullah Electro Dynamics Ltd.