Bearish sentiment continued to hit stock market for the second consecutive week, as investors preferred to stay on the sidelines in the wake of deepening political crisis.
The market, however, recovered some losses in the past week that ended on Thursday in comparison to the previous week.
The benchmark DSEX rose marginally 46 points or 1% to close at 4277, lifted by heavyweight banks that rallied more than 6%.
However, the DS30 Index comprising blue chips 40 points or 2.6% to close 1504.
The Chittagong Stock Exchange (CSE) Selective Category Index gained 90 points or 1% to close at 8372.
Investor present on the trading floor was very thin throughout the week because of the blockade enforced by BNP-led 18-party alliance.
Risk-averse investors refrained from putting fresh funds in the past week, making the turnover to decline more 30% to Tk400 crore over the previous week’s average of Tk600 crore.
Although the market managed to close positive, quick profit booking and political uncertainty have ruled the market, said stock brokers.
They said investors adopted ‘wait-and-see’ policy due to fresh deepening political turmoil in the run up to the general election scheduled for early next month.
Market recovered from previous week’s shock but investors are still fragile about future direction, said Lanka Bangla Securities, in its weekly market analysis.
The week started with a huge red day in continuation of last week. Following two days were under the control of buyers. Again last two trading days were mild reds.
The leading brokerage firm Lanka Bangla said investors are skeptical about the domestic business climate. “If this sort of political deadlock prolongs, corporate profitability will be seriously hampered.”
It said RMG export is being seriously hampered as road transport is being hampered due to continuous nationwide strikes. On the other hand, domestic market is swelled with idle liquidity. Call money rate has come down to around 6%.
IDLC Investments, one of leading merchant banks, said so market participants are in a continuous fix whether to take position or stay in a side line to observe where political situation of Bangladesh goes.
Nevertheless, the week was not dull; rather confusion spurred sharp volatility in the market, generating significant return from micro cap stocks, it said.
Banks gained over 6%, the most in the past week, followed by telecommunications with 1.6% and pharmaceuticals 0.6%.
Fuel & power and financial institutions were the worst losers edging lower.
Delta Life Insurance was the week’s top turnover leader with shares worth Tk200 crore changing hands followed by Paramount Textile, Generation Next Fashion, RN Spinning and Bangladesh Building Systems.
Rahima Food was the week’s top gainer, posting a rise of over 39% while Meghna Petroleum was the week’s worst loser with a fall of 20%.
