Stocks remained flat for three weeks in a row, hit by the renewed political uncertainty.
During the week that ended Thursday, the benchmark DSEX dropped 84 points or 2% to 4,013. The DS30 Index comprising blue chips lost 48 points or 3% to 1,464.
The Chittagong Stock Exchange (CSE) Selective Category Index fell 144 points or 2% to close at 7,838.
Trading activities continued to decline with the daily average turnover value coming down to Tk4bn, a fall of more than 29% over the previous week and lowest in three weeks.
“The market opened in negative zone in most of the trading sessions, following weeklong sell-off amid the dispute airing around the coming election among the political parties,” said the Lanka Bangla Securities in its weekly market commentary.
Some buying pressure had been initiated that spurred a short-term rally in small and mid-cap stocks, but its full flavour could not sustain till the end of the week on shaky market confidence and regulatory interruptions in trading of few stocks, it said.
Large cap stocks were not in the hot list of investors in the week and got corrected with the broad index, it said. But low-cap companies rallied unusually, brining those stocks under fire of the securities regulator.
Potential political unrest and uncertainty in banking and RMG sectors worked as negative catalysts in market sentiment, according to Lanka Bangla.
Turnover of this week reached the seven-week low, indicating this short-term downtrend may run out of stream soon.
IDLC Investments in its weekly market analysis said political uncertainty, unrest in RMG sector and investors’ mentality mostly contributed to generating quick return ahead of Eid-ul-Azha in this week’s market sentiment.
Investors’ pursuance of meticulous polity over dimmed capital market scenario put market situation in an indecisive mood, it said.
Additionally, the investors sector-wise as well as scrip-wise focus intended market scenario to remain volatile throughout the week.
Losers took a marginal lead over the gainers as out of 298 issues traded during the week, 170 declined, 115 advanced and 13 remained unchanged on the DSE.
All the major sectors ended in red in the week. Financial institutions were the biggest loser as it was down 6%, followed by telecommunications nearly 4%, fuel and power, and pharmaceuticals more than 3% each. All three posted hefty losses during the week.
Banks continued to remain under pressure with losing 0.7%.
CMC Kamal was the week’s top turnover leader with shares worth Tk714m changing hands, followed by Bangladesh Submarine Cable and Company Ltd, Tallu Spinning, Generation Next Fashion and United Airways.