Dhaka, Bangladesh (BBN)-Bangladesh’s stocks extended losses for the second consecutive weeks that ended on Thursday as most of the investors followed ‘wait-and-see’ approach amid lack of clear market direction.
Market insiders said, the investors seem to be worried over possible impact of higher burden on the industrial segment due to hike in gas and electricity tariff while speedy disposal of stock-scam cases created mixed reaction among the investors.
The week witnessed five trading sessions as usual. Of them, first three sessions witnessed downward trend while last two saw marginal gain.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), dipped below the 4,800-mark further and finished the week at 4,765.72, shedding 47.10 points or 0.98 per cent.
The DS30 index, comprising blue chips, lost 11.71 points or 0.96 per cent to settle at 1,823.17.
The DSE Shariah Index plunged 9.60 points or 0.81 percent to end the week at 1,177.11.
The port city bourse Chittagong Stock Exchange (CSE) also tumbled with its Selective Categories Index - CSCX – lost 80.37 points or 0.89 per cent to close the week at 8,890.24.
The total turnover tumbled further and amounted to BDT 19.70 billion against BDT 21.76 billion in the week before.
The daily turnover for the week averaged BDT 3.94 billion, registering a decline of 9.49 per cent over the previous week’s averaged BDT 4.35 billion.
LankaBangla Securities, a stockbroker, said, “Investors remained in the sideline as the market had yet to provide any solid direction”.
“Investors remained cautious and adopted ‘wait-and-see’ stance as no clear indication of forthcoming market outlook was apparent,” said International Leasing Securities, in its weekly analysis.
The maiden verdict and upcoming hearing on the 1996 share market scam cases accelerated the cautiousness among the investors, it said.
IDLC Investments, a merchant bank, said, “Electricity and gas price hike in the last working day of the week were assumed negatively as, high power cost is sure to negatively affect margins of manufacturing companies”.
The merchant bank noted that impact of the hike on energy companies mostly unclear until further clarification. In this backdrop, first three sessions of the week observed a brutal sell off of 88.3 points.
Losers outpaced gainers as out of 325 issues traded, 186 declined, 118 advanced and 21 remained unchanged on the DSE floor during the week.
The newly listed Aman Feed dominated the week’s top turnover chart with shares worth BDT 1.60 billion changing hands followed by Square Pharma, SPCL, Lafarge Surma Cement and Titas Gas.
AIBL Islamic Mutual Fund was the week’s best performer, posting a rise of 29.79 per cent while Southeast Bank First Mutual Fund was the week’s worst loser, plunging by 15.38 per cent.
BBN/SK/AD