Dhaka, Bangladesh (BBN)– Bangladesh’s stocks suffered a big jolt last week that ended on Thursday as most of the investors were selling spree, especially bank and telecom issues.
Analysts said lower-than-expected quarterly earnings results, no dividend declaration of AB Bank for the first time coupled with long public holiday might be causes behind negative sentiment in the market last week.
Some 90 listed companies disclosed their un-audited quarterly financial results while some 29 companies, including 10 banks recommended dividends last week.
The week featured only two trading days as the market remain closed Tuesday and Wednesday on the occasion of May Day and Shab-e-Barat. The two sessions faced sharp decline.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 115 points or 1.98 percent to settle the week at 5,698.
Two other indices also ended lower with the DS30 index, comprising blue chips, fell nearly 44 points to finish at 2,128 and the DSES (Shariah) index lost 25 points to settle at 1,318.
The port city’s bourse the Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index – CASPI – losing 331 points to settle at 17,595 and Selective Categories Index – CSCX –shedding 197 points to close at 10,639 points.
Turnover, another important indicator of the market, stood at BDT 10.61 billion last week against BDT 25 billion in the week before as last week saw only two trading sessions instead of previous week’s five.
The daily turnover averaged BDT 5.33 billion, which was 6.46 percent higher than the previous week’s average of BDT 5.01 billion.
According to EBL Securities, recent earnings declarations from several issues might have failed to meet investors’ expectation that resulted into selling pressure throughout the week.
“Microeconomic scenario like deteriorating heath of balance of payment due to increased import payment raised concerned among investors,” the stockbroker said.
Te major sectors posted negative movement with banking sector posted the highest loss of 3.70 percent, followed by telecommunication with 1.90 percent, non-bank financial institutions 1.77 percent, engineering 1.60 percent, power 1.37 percent and food & allied 0.78 percent.
The losers took a strong lead over the gainers as out of 341 issues traded, 214 closed lower, 98 advanced and 29 issues remained unchanged on the DSE floor.
Beximco dominated the turnover chart for the five consecutive weeks with shares worth BDT 795 million changing hands, followed by BRAC Bank, Square Pharma, Navana CNG and BBS Cables.
Recently listed Queen South Textile was the week’s best performer, posting a gain of 20.78 percent while the AB Bank was the week’s worst loser, losing 26.38 percent following its no dividend declaration.