Dhaka, Bangladesh (BBN) – Dhaka stocks declined for a third week amid low turnover as investors went for panic sell-offs fearing a further fall in the market.
The benchmark general index, DGEN of Dhaka Stock Exchange, retraced 0.75 percent or 47.04 points, to end the week at 6,212.86. The blue-chip index, DSE-20, declined 0.83 percent or 34.67 points.
“Last week’s volume of transactions was low,” Prof Mahmood Osman Imam, a finance teacher at Dhaka University was quoted by The Daily Star, a local newspaper, as saying. “It was unusual.”
The regular should pay attention to why turnover declined dramatically, said Imam, also a member of the index development committee of DSE.
He also said merchant bankers should opt for better management for discretionary account and portfolio management. Institutional investors were largely inactive and watching the market cautiously, he added.
Turnover stood at BDT 25.40 billion, 54.6 percent lower form the previous week’s turnover of BDT 44.19 billion, the DSE data showed.
The week witnessed five trading sessions, two sessions gained while the other three lost. DGEN advanced 0.81 percent in the last session of the week.
Index and turnover both have experienced continuous fall as investors went for panic sell-offs following the news of the moves taken by the regulator and the Anti Corruption Commission to file cases against market manipulators, the newspaper reported quoting an analyst.
The country’s opposition parties said it would give a boost to an anti-government campaign after Ramadan, protesting the re-cent constitutional amendment, he added.
BBN/SSR/AD-14Aug11-12:35 am (BST)
