Investors in dejection as Bangladesh's stocks plunge. BBN file photo
Dhaka, Bangladesh (BBN)- Bangladesh’s stocks extended the losing streak for the third straight week that ended on Thursday as worried investors continued their selling binge on large-cap shares.
Week on week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 39.22 points or 0.82 per cent to close at 4,771.
The outgoing week saw five trading days as usual. Of them, a single positive session with 110 points increase amidst four negative sessions which ultimately weighted more as DSEX lost 39 points.
Market experts said ongoing depressed market outlook coupled with growing concern about the telecom regulator moves to appoint administrator to Grameenphone over unpaid dues dragged the market down.
GP, which is the largest company by capital, slumped 4.56 per cent last week as the shaky investors sold GP shares riding on the news that the telecom regulator moves to appoint administrators to GP over unpaid dues.
The institutional investors are suffering from liquidity crunch while the retail investors are not confident enough to inject funds into stocks amid a gloomy market outlook, taking the market in the red zone again, they added.
Accordingly, the DSEX has lost a cumulative 1,179 points or nearly 20 per cent in the past nine months since January 24, this year when the index peaked at 5,950.
Two other indices also ended lower. The DS30 index, comprising blue chips, fell 25.52 points to finish at 1,679 and the DSE Shariah Index lost 17.33 points to close at 1,094.
The weekly total turnover on the prime bourse stood at BDT 15.63 billion, up from BDT 12.76 billion in the week before, as last week saw five trading days instead of previous week’s four.
Most of the major sectors showed negative performances, with telecom sector posted the highest loss of 4.60 per cent, followed by textile with 3.60 per cent, engineering 1.70 per cent, non-bank financial institutions 1.40 per cent and food 1.20 per cent.
Only banking sector gained 1.10 per cent.
Losers outnumbered the gainers, as out of 355 issues traded, 209 closed lower and 128 ended higher while 18 issues remained unchanged on the DSE floor in the outgoing week.
National Tubes dominated the week’s turnover chart, with 4.60 million shares worth BDT 865 million changing hands during the week.
The week’s other turnover leaders were Bangladesh Shipping Corporation, Square Pharma, Wata Chemicals and Monno Jute Stafflers.
Mercantile Insurance was the week’s best performer, posting a gain of 18.15 per cent while the Standard Ceramic was the worst loser, shedding 29.03 per cent.
On the other hand, the Chittagong Stock Exchange (CSE) also ended lower, with its CSE All Share Price Index – CASPI – losing 148 points to settle at 14,507 and the Selective Categories Index – CSCX – shedding 84 points to finish the week at 8,816.