Stock market stayed flat amid volatility in the past week, as investors continued to take cautious stance over the current political standoff that hit trade and commerce hard.
Investors with limited participation were in quick marginal profit booking mood in the past week that lost almost same points gained in the previous week.
In the past week that ended Thursday, the benchmark index DSEX ended at flat at 4,956, edging 12 points or 0.8%, after rising 14 points in the previous session.
The comprising blue chips DS30 index moved up 15 points or 0.9% to 1,839. The DSE Shariah Index, DSES, also gained slightly 7 points or 0.7% to 1,181.
The Chittagong Stock Exchange Selective Categories Index, CSCX, was down 8 points or 0.3% to settle at 9,200.
Being cautious and worried over the political turmoil ensued over the national elections, investors remained reluctant to put fresh fund on stocks during the week, leading to decline in poor turnover, according to stockbrokers.
The political stalemate has hit the country again on one year completion of controversial January 5 election which brought ruling Awami League into power again with its main rival BNP boycotting.
IDLC Investments said continuous nationwide blockade brought back last year’s experience of supply chain break down in investors’ sentiment, forcing them to be cautious in fresh fund injection, putting overall market in a mixed state.
It said, however, some investors were comparatively bullish on future macroeconomic prospects, backed by optimistic growth forecast by the World Bank and higher private sector credit growth.
Lanka Bangla Securities said though, macro indicators like inflation, interest rate, private sector credit growth etc. are in favor of the market, investors seem to be shaky because of instability in political frontier.
It said investors’ went for short term investment during the past week, resulting in volatility in stock prices.
Among the major sectors, top gaining sectors were paper & printing that gained 4.3%, food & allied 4.2%, textile 3.2% respectively.
Conversely, top losing sectors were ceramic that declined 2%, mutual fund 1.9%, telecommunication 1.8% and miscellaneous.
The list of top performing companies was not changed significantly during the week, with companies such as Agni Systems, Saif Powertec, Western Marine Shipyard, Grameenphone, Alltex Industries, IDLC, Bangladesh Building Systems and DESCO maintaining their dominance.
