Bears became stronger than the bulls in the past week as stocks returned to the losing streak with turnover falling sharply.
Investors were extra-cautious in anticipation of a prolonged political unrest, casting a gloomy prospect of economic outlook, said analysts. BNP led 18-party alliance called for a fifth nationwide road, rail and waterways blockade that started yesterday 6 am and would continue till 5pm Tuesday.
During the week ended Thursday, the benchmark index DSEX dropped 55 points or 1.4% to close at 4,244, after remaining flat in the previous two weeks. The blue chip index DS30 ended at 1,467 shedding 23 points or 1.6%.
The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, lost 95 points or 1% to 8,340.
The week witnessed four trading sessions as market was remained closed on Monday, marking the occasion of Victory Day. The market fell for first three sessions while last one managed to close positive amid reduced activities caused by absence of positive expectations.
The market saw lower investor participation in the past week. The daily turnover averaged Tk500 crore, registering a 20% fall compared to the previous week’s average of Tk600 crore.
Gradually, market seems to change its mood from enthusiasm to cautiousness, said Lanka Bangla Securities in its weekly market analysis.
It said after a huge rally in November, investors seem to have gone on the sidelines to access to the scenario. They feel if economic scenario gets into trouble due to prolonged political clashes, market valuation may start looking expensive, it said.
“On the other hand, year-end profit booking is also putting pressure on the market.”
IDLC Investments said keeping in line with gloomy political and economic outlook, the equity market passed a depressed week, as inventors lacked any apparent motivation to commit funds for a long time.
Most of the stocks suffered, especially mid cap and large cap ones. Market participation was highly concentrated to a few scripts throughout the week.
The past week was depressing for almost all the major sectors. Textile only stood positive in this down turn with fractional gain. Alongside, excessive trading in textile stocks was also observed, driving the sector capturing 27% of the week’s total trading.
All other sectors ended in red. Banks were the biggest losers shedding 1.6%. It was followed by fuel & power 1.4% and telecommunications 1.2%.
The losers took a strong lead over the gainers as out of 296 issues traded in the past week, 190 declined, 87 advanced and 19 remained unchanged on DSE.