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Dhaka, Bangladesh (BBN)– Bangladesh’s stocks witnessed yet another bearish week that ended on Thursday, extending the losing streak for the two weeks in a row as risk-averse investors continued their selling binge.
Brokers said the worried investors were busy to cash in on stocks to safeguard their position throughout the week while sale pressure from the issues from banks, non-bank financial institutions, and cement, power and telecom sectors dragged down indices.
The week witnessed five trading sessions as usual. Of them, four sessions closed lower while one managed to edge higher.
The benchmark index of the Dhaka Stock Exchange (DSE) finished at more than three months low to 5,399.60, plunging by 96.55 points or 1.76 percent over the previous week.
The two other indices also finished lower. The DS30 index, comprising blue chips, fell 32.16 points or 1.59 percent to close at 1992 points. The DSE Shariah Index also lost 18.22 points or 1.43 percent to close at 1,255 points.
The port city bourse, Chittagong Stock Exchange (CSE), also ended lower with its Selective Categories Index, CSCX, plunging by 194 points or 1.88 percent to settle at 10,124 points.
The total turnover for the week stood at BDT 29.71 billion against BDT 28.31 billion in the week before as last week saw five trading sessions instead of previous week’s four.
However, the daily turnover averaged at BDT 5.94 billion, which was 16 percent lower than the previous week’s average of BDT 7.07 billion.
“The correction was triggered by some news like rising classified loans and move to amend Bank Companies Act 1991 that created a negative impact on investors’ mind,” commented City Bank Capital Resources, a merchant bank, in its weekly analysis.
International Leasing Securities, a stockbroker, said, “Indecisiveness and lack of confidence among the investors created choppy trading throughout the week”.
The stockbroker noted that the risk-averse investors continued their sell offs to avoid further loss while some adopted ‘wait-and-see’ approach ahead of budget announcement and holy month of Ramadan.
“Bank stocks continued to fall amid concern over amendment of Bank Companies Act 1991 and its impact on the banking sector while upcoming national budget and holy month of Ramadan kept most of the investors watchful,” said the stockbroker.
“Recent gloomy situation of the market adversely affected the turnover which lessened the total market activities by 16 per cent than that of the preceding week,” said the stockbroker.
Large cap sectors showed negative performance throughout the week. The financial institutions posted the highest loss of 4.22 percent, followed by banks 2.35 percent, telecommunication 1.48 percent, fuel and power 1.27 percent, pharmaceuticals 0.47 percent, engineering 0.24 percent and food and allied 0.03 percent.
Out of 331 issues traded, 202 closed lower, 103 closed higher and 26 remained unchanged on the DSE trading floor.
IFAD Autos topped the week’s turnover chart with about 12.03 million shares of BDT 1.62 billion changing hands, closely followed by Doreen Power, Paramount Textile, LankaBangla Finance and Ratanpur Steel.
Northern Jute Manufacturing was the week’s highest gainer, posting a 25 percent rise, while Fareast Finance was the worst loser, slumping by 26 percent.