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Bears return to stock market over the past week

  • Published at 06:03 am July 28th, 2013
Bears return to stock market over the past week

Bear dominated the past week in the stock market, prompting heavy sale-offs as investors got panicked due to the recent steepest fall in share prices. 

Investors wrapped up their investments in fear of further losses and political uncertainty in the run up to the general election, dealers said.

In the week that ended on Thursday, the benchmark DSE General Index (DGEN) lost 256 points or 1% to close at 4,312. The index will be removed from the screen at the end of this week.

The free-float based index, DSEX, was down 244 points or 5.8% to 3,979. The blue-chip index DS30 dropped 120 points or 7.6% to close at 1,478.

The Chittagong Stock Exchange (CSE) Selective Category Index, CSCX, lost 493 points or 6% to 7,853.

Investors’ participation in trading took a jolt as the week’s DSE turnover stood Tk4.7bn, a sharp decline of 46% over the previous week's Tk8.6bn.

“Twin mania situation of panic driven selling spree and turmoil in confidence seemed to dominate the bourse over the week,” said IDLC Investments in its weekly market analysis.

As sentiment moved ups and down, volatility prevailed in the market over frequent scrip wise movements, eventually both DGEN and DSEX got heavy shed off, it said.

Besides, the investors remained watchful over the Monetary Policy Statement (MPS) rather than injecting fresh funds, it said.

“The whole week belongs to sellers. Four out of five days were red due to constant sell pressure from the investors,” said Lanka Bangla Securities.

It said due to a big fall on the first day of the week after a similar fall in the end of the last day of the week, panic started to creep in to the nerves of investors.

The losers took a strong lead over the gainers as out of 295 issues traded during the week at DSE, 235 declined, 52 advanced and eight remained unchanged.

None of the sectors ended in green in the week, apart from food and allied and mutual funds sectors which gained 4.8% and 0.8%.

“Amendment to mutual fund regulations has left positive impact on the mutual funds,” said a stockbroker.

All the major sectors ended in red with fuel and power sector losing the most 10.2%, followed by financial institutions 7.9% and telecommunications 7.7%.

Investors centralised their participations mostly in fuel and power, telecommunications and pharmaceutical sectors that accounted for 26.5%, 11.5% and 10.4%.

Meghna Petroleum became the week's top turnover leader with shares worth Tk1.8bn changing hands, followed by Grameenphone, Padma Oil, Titas Gas, Bangladesh Submarine Cable Company Ltd, Jamuna Oil, Square Pharma, Olympic Industries, Unique Hotel and Resorts and United Airways.