Political uncertainty continued to batter stocks that fell for the fourth straight weeks in a row.
During the week that ended Thursday, the benchmark DSEX Index dropped 65 points or 1.7% to 3,948.
The DS30 Index comprising blue chips lost 22 points or 1.6% to 1,442 in the week. The Chittagong Stock Exchange (CSE) Selective Category Index fell 111 points or 1.5% 7,838.
Trading activities declined sharply as the daily average turnover value came down to Tk3bn mark a figure considered poorest in terms of market size.
It was Tk2.8bn in the past week, a decrease of 31% over the previous week’s average value of Tk4bn.
“Fear of turmoil on the political front and investors’ preference to naturalise short-term returns ahead of Eid-ul-Azha streamlined the week’s market sentiment,” said the IDLC Investments in its weekly market analysis.
It said cautious trading amid a turnaround situation alongside the shaky confidence of investors kept the market in an indecisive mood.
Investors’ scrip-wise focus and the back and forth movement left the market volatile throughout the week.
“With only five trading sessions remaining ahead of the Eid-ul-Azha, investors are trying to safeguard their portfolio, anticipating an adverse effect of the imminent confrontation among political parties over the next general election,” the Lanka Bangla Securities said.
Stealthy participation dragged the DSEX below the psychological level of 4,000 points in the week as investors adopted a ‘wait-and-see’ strategy concerning investments.
Stocks tumbled on the first three days of the week amid a low turnover while a suspicious spike in prices of some stocks, fear about impaired profitability in the third quarter (Q3) in the financial sector and battle among political parties plagued the investors’ sentiment adversely, it said.
Meanwhile, some fundamentally strong shares sparked rallies, which were short-lived, as some astute investors were tempted by the attractive price.
“Investors’ apprehension about political confrontation still persists, and the upcoming Eid-ul-Azha which is making shareholders remove their money from deposits, is acting as the main headwind for growth in the stock market,” observed Zenith Investments.
Textile and pharmaceutical sectors shined, accounting for nearly 20% and 11% of the total turnover of the past week.
Losers outpaced gainers as out of 295 issues traded, 196 declined, 86 advanced and 13 remained unchanged.
The week saw all major sectors closed down except telecommunications which gained marginally 0.4%.
The financial institutions sector was the biggest loser as it went down by over 2%, followed by pharmaceutical sector over 2%, fuel and power 1.3%. Banks lost the least with 0.7%.
Bangladesh Submarine Cable Company became the week’s turnover leader with shares worth Tk622m changing hands followed by Square Pharmaceuticals, Argon Denim, CMC Kamal and Delta Life Insurance.
The LG Global Mutual Fund One was the week’s top gainer, posting an increase of 30% while Monno Stafflers was the week’s worst loser as its price slumped by 25%.
