Low volume and lack of interest from investors turned the stock market towards bearish spell as DSEX, the benchmark index of Dhaka Stock Exchange, shed another 94 points in the past week that ended Thursday.
With this fall, the DSEX lost 114 in the past two consecutive weeks to settle at 4,472.
Quick profit booking selling pressure and heavy sell-off for redemption of three mutual funds—AIMS First Mutual Fund, Grameen Mutual Fund One and First ICB Mutual Fund – weighed on stock in the past week, analysts say.
The blue-chip comprising index DS30 fell 34 points or 2% to 1,718. The DSE Shariah Index, DSES, shed about 29 points or 2.6% to 1,086.
The Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,369, moving down 197 points or 2.3%.
The DSE daily average turnover was Tk449 crore, down almost 10% over the previous week. Engineering, pharmaceuticals and textiles sectors contributed 46% of the week’s total turnover.
All the large cap sectors declined during the week. Telecommunication posted a heavy loss of 4.6%, followed by food & allied 2.4%, banks 2.4%, NBFIs 1.5%, power 1.4%. pharmaceuticals 1% and engineering 0.6% during the week.
Ceramic and cement were also the losing sectors. Among the week’s gaining sectors, low-cap jute gained highest 1.7%, followed by life insurance 1.62%.
Lanka Bangla Securities said the sell pressure was high during the past week since three of the mutual funds completed liquidation of their portfolio.
IDLC Investments said the market passed an eventful week amid a couple of corporate declarations and the completion of winding up process of the mutual funds.
Following their poor dividend declarations, Singer BD and Heidelberg Cement faced correction by 21.1% and 9.2% respectively last week, it added.
However, in the final session of the week, value investors came into play to take the benefit of declining prices of some blue-chip stocks, it said.
Losers outpaced gainers as out of 327 issues traded, 231 closed lower, 72 higher and 24 remained unchanged on the DSE.
Lanka Bangla Finance was the top turnover leader for the second straight week with shares worth Tk148 crore changing hands, followed by Orion Pharma, Singer BD, United Power Generation & Distribution Company, IFAD Autos and Orion Pharma.
