Dhaka, Bangladesh (BBN)– Bangladesh’s stocks suffered a big jolt last week that ended on Thursday as investors sold bank shares in a reaction to the Bangladesh Bank’s latest punitive action against seven banks.
Following the central bank’s punitive move, the banking sector fell sharply by 3.80 percent with 25 listed banks closed in the red. Of the banks, 13 lost more than 8.0 percent each.
The week witnessed five trading sessions as usual. Of them, three sessions closed red with combined loss of 154 points while two sessions advanced 16 points.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, went down by 138 points or 2.22 percent to settle at more than one month low at 6,064.
The two other indices — the DS30 index and the DSE Shariah Index (DSES) – also followed the suit to close at 2,197 and 1,334 points, after losing 3.97 points and 16.24 points respectively.
The port city bourse, Chittagong Stock Exchange (CSE), also fell sharply with its Selective Categories Index, CSCX, losing 291 points or 2.49 percent to settle at 11,378.
The total turnover for the week stood at BDT 46.23 billion on the DSE which was BDT 36.70 billion in the week before, rising 26 percent as the last week saw five trading sessions instead of previous week’s four.
The daily turnover averaged at BDT 9.24 billion, which was 0.76 percent higher than the previous week’s average of BDT 9.17 billion.
EBL Securities, a stockbroker, said, “The market breaks the rally quite drastically in last week pushing the index downward with some intervals”.
The stockbroker noted that Bangladesh Bank’s move to punish errant banks has reshuffled the investors’ intention to impose maximum position on the stocks from banking sector.
Out of 334 issues traded, 247 closed lower, 72 closed higher and 15 remained unchanged on the DSE trading floor.
LankaBangla Finance topped the week’s turnover chart with 34.73 million shares of BDT 2.24 billion changing hands, closely followed by Uttara Bank, Islami Bank, Brac Bank and Exim Bank.
Stylecraft was the week’s best performer, posting a 64.20 percent gain following its hefty dividend declaration, while newly listed Aamra Networks was the worst loser, losing 20.35 percent.