Dhaka, Bangladesh (BBN)-Bangladesh’s stocks saw steep decline last week that ended on Thursday with sluggish trading activities as sentiment remained shaky following some anti-capital market decision in the proposed budget.
Week-on-week, DSEX, the prime index of Dhaka Stock Exchange (DSE), went down by 80.40 points or 1.82 percent to close at 4,328.41 points and touched at five months’ since January 6, this year.
The DS30, comprising blue chips, lost 34.62 points or 2.11 percent to close at 1,603.46 points.
The DSE Shariah Index (DSES) went down by 25.27 points or 2.48 percent to close at 992.97 points.
The port city bourse, the Chittagong Stock Exchange (CSE), also saw sharp decline last week with its Selective Categories Index – CSCX — lost 145.55 points or 1.73 percent to close the week at 8,264.88 points.
The week’s total turnover came down to BDT 13.97 billion on DSE which was BDT 20.95 billion in the previous week.
The average daily turnover for the week came down to BDT 2.79 billion, registering a decline of 33.32 percent over the previous week’s average of BDT 4.19 billion.
“The higher capital gain tax imposition and withdrawal of the provision for 10 percent tax rebate facility for companies declaring more than 20 percent dividend in the proposed budget, disappointed the investors most,” said an analyst.
IDLC Investments said “Coupled with substantial profit booking and erosion in confidence amid investors, the bourse faced significant downtrend, last week”.
“Investors continued to be in bearish mood and there is no apparent buying interest,” commented LankaBangla Securities, in its weekly market analysis.
Market sentiment has become very shaky after the budget for 2014-15 proposed some anti-capital market decision, the stock broker said.
Out of 303 issues traded during the week, 238 declined, 52 advanced and 13 issues remained unchanged on the DSE floor.
Only One company – Delta Life Insurance – made corporate declaration last week. The company declared 11 percent cash and 25 percent stock dividend for the year ended on December 31, 2013.
The market capitalisation of the DSE went down by 1.48 percent as it was BDT 2,909.23 billion on the opening day of the week and it stood at BDT 2,866.26 billion on closing day of the week.
Lafarge Surma Cement dominated the week’s top turnover chart with shares worth BDT 1.17 billion changing hands during the week followed by GP, BSRM Steels, Peninsula Chittagong and Square Pharmaceuticals.
Beximco Limited was the week’s top gainer, posting a rise of 9.35 percent while Renwick Jajneswar & Co. (BD) Ltd was the week’s worst loser, slumping by 12.83 percent.
A new issue Peninsula Chittagong, a service sector company, made debut last week on DSE and CSE, but failed to draw considerable response from investors.