Dhaka, Bangladesh (BBN)– Bangladesh’s stocks closed lower last week that ended on Thursday as worried investors were selling of shares mostly from banks and non-bank financial institutions to avoid further loss.
Analysts said historical trend has shown that before a budget announcement, investors prefer to book profit to avoid unforeseen negative impact of new budget, which is scheduled to unveil June 1,” taking the market into the negative territory.
The prime index of the Dhaka Stock Exchange (DSE), dipped below the 5,500-mark and settled at 5,496, losing 44.50 points or 0.80 percent over the previous week.
The two other indices also closed lower. The DS30 index, comprising blue chips, fell 9.76 points or 0.48 percent to close at 2,024 points.
The DSE Shariah Index also lost 1.69 points or 0.13 percent to close at 1,273 points.
The port city bourse, Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index, CSCX, losing 97 points or 0.93 percent to settle at 10,318 points.
The total turnover for the week stood at BDT 28.31 billion against BDT 28.41 billion the week before.
The daily turnover averaged at BDT 7.07 billion, which was 0.37 percent lower than the previous week’s average of BDT 7.10 billion.
International Leasing Securities, a stockbroker, said, “Indecisiveness and lack of confidence among the investors created choppy trading during the week. The risk-averse investors continued their sell offs to avoid further loss”.
The stockbroker noted that selling of shares mostly from bank, financial institution and telecom sectors contributed to the fall in indices in the week.
Most of the major sector faced erosion. The bank sector faced the highest correction of 2.62 percent, followed by non-bank financial institutions 1.45 percent, telecommunication 0.82 percent, fuel and power 0.58 percent and food and allied 0.36 percent.
The engineering and pharmaceuticals managed to close green, advancing 0.46 percent and 0.36 percent respectively.
The losers took a modest lead over the gainers as out of 331 issues traded, 158 closed lower, 131 closed higher and 28 remained unchanged on the DSE trading floor.
Doreen Power Generations and Systems dominated the week’s turnover chart with shares of BDT 1.52 billion changing hands, followed by LankaBangla Finance, United Power, Argon Denims and Shahjibazar Power Company.
Central Insurance Company was the week’s biggest gainer, posting a 22 percent gain, while Midas Financing was the worst loser, slumping by 14 percent following its no dividend declaration news.