Dhaka, Bangladesh (BBN)- Bangladesh’s stocks suffered a big jolt last week that ended on Thursday with turnover falling drastically as investors went for selling frenzy amid lack of any clear market direction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) came down below the ‘psychological’ threshold of 4,800-mark and closed the week at 4,772.56 points, shedding 127.05 points or 2.59 percent.
The two other indices also saw significant fall. The DS30, comprising blue chips index lost 53.79 points or 2.96 percent to close at 1,760.90 points. The DSE Shariah Index fell 38.96 points or 3.40 percent to close at 1,106.86 points.
The port city bourse Chittagong Stock Exchange (CSE) also saw steep decline for the four consecutive weeks with its Selective Categories Index-CSCX – plunged 301.38 points or 3.25 percent to close the week at 8,952.62 points.
The market’s participation dropped sharply and the total turnover for the week plummeted to BDT 16.27 billion against BDT 31.35 billion the week before.
The daily turnover for the week averaged BDT 3.25 billion, registering a decline of 48 per cent over the previous week’s average of BDT 6.27 billion.
IDLC Investments said. “Investors tried to save whatever little gain they had in the last rally and in the process further pulled down the index”.
“Fresh fund injection almost came to a halt as investors fear further correction. The benchmark index broke 4,800 points support level as frustrated investors tried to escape the downfall,” said the merchant bank.
“Stocks from the major sectors including large-cap local companies and multinational companies along with several recent IPOs witnessed major price depreciation,” said International Leasing Securities.
LankaBangla Securities said: “The benchmark index observed another week of correction as investors seem to be acting cautiously as they lack any market direction”.
All the major sectors yield negative returns last week except food and allied which witnessed marginal appreciation of 0.22 per cent.
Fuel and power registered the highest loss of the week going down by 6.94 per cent followed by telecommunication 6.16 per cent. NBFIs, pharmaceuticals and bank also lost 3.73 per cent, 2.59 per cent and 0.79 per cent respectively.
The losers took a strong lead over the gainers as out of 316 issues traded, 244 declined, 48 advanced and 24 remained unchanged on the DSE trading floor.
Four listed companies – Bata Shoe, BATBC, ICB and Bengal Windsor Thermoplastic and made corporate declaration last week.
Western Marine Shipyard dominated the week’s top turnover chart with shares worth BDT 723.87 million changing hands followed by Jamuna Oil, Lafarge Surma Cement, Beximco Pharma and Khan Brokers PP Woven Bag.
Monno Stafflers was also the week’s top gainer, posting a rise of 11.02 percent while Mithun Knitting was the week’s worst loser, plunging by 23.72 percent.
BBN/BB/SSR-28Nov14-7:33 pm (BST)