Dhaka, Bangladesh (BBN)– Dhaka stocks could not came out from the bearish trend and went down for the two straight weeks despite significant gain in the last two sessions amid institutional support, market operators said.
They also said the market fell for the second week, as the government decision to build Padma Bridge with its own fund and probable tight monetary policy made the investors cautious.
However, the institutional support helped the market to regain some points in the last two sessions—Wednesday and Thursday—otherwise the fall would have been much bigger, they added.
In the wake of declining trend, the DGEN came down below the 4,000 points level Tuesday amid lack of confidence, liquidity shortage and absence of institutional participation. However, the government instructed Wednesday the institutions including the state-owned ICB to support the market.
The week witnessed five trading sessions as usual. Among those, first three sessions lost about 301 points while in the last two sessions it gained over 175 points.
In the week, the benchmark general index of the Dhaka Stock Exchange (DSE)—DGEN—plummeted over 126 points or 2.93 per cent to close at 4,164.96.
The DGEN came down below the 4,000 points level Tuesday of the week following a drastic fall in share prices. However, in the next day it managed to cross the level following government intervention.
The broader All Shares Price Index (DSI) went down by 110.66 points or 3.04 per cent to 3,533.52. The DSE-20 Index comprising blue chips also lost 39.83 points or 1.19 per cent to close at 3,316.35.
“The market knocked down for another week as the investors upheld its discounting on Padma Bridge issue,” commented LankaBangla Securities in its weekly analysis.
The investors were also fearful about upcoming monetary policy, which is anticipated to be contractionary similar to the last half of previous fiscal year 2011-12, it added.
However, it could have been worst, if the market did not bounce back in the last two trading sessions backing on institutional buying, it added.
Amid lack of mass participation, the turnover value remained in the lower level. The week’s total turnover value stood at BDT 8.52 billion against BDT 6.74 billion in the previous week.
However, the average daily turnover value was almost same to BDT 1.70 billion compared to BDT 1.69 billion in the previous session as the week witnessed one more session.
Out of 282 issues traded, 42 advanced, 231 declined and nine remained unchanged in the week.
All the sectors except jute went down in the week. Among the major sectors, non-banking financial institutions (NBFIs) lost 6.37 percent, the most the week, followed by pharmaceuticals 3.10 percent and fuel and power 2.24 percent. Banks and telecommunications also went down by 1.84 percent and 1.34 percent respectively.
The market capitalization of the DSE decreased by 2.15 percent last week, as it was BDT 2,403.68 billion on the opening day of the week and at the end of the week it stood at BDT 2, 352.0 billion, the DSE data showed.
Grameenphone (GP) topped the week’s turnover chart with shares worth BDT 529.13 million changed hands during the week.
The week’s other turnover leaders were BSCCL, Meghna Petroleum, Lafarge Surma Cement, Jamuna Oil, LankaBangla Finance, National Bank, Square Pharma, Unique Hotel and Beximco Limited.
Jute Spinners was the week’s top gainer, posting a rise of 10.41 percent followed by First Bangladesh Fixed Income Fund, Fifth ICB, AB Bank First Mutual Fund, ICB AMCL First MF, Eastern Insurance, National Tea Company, Prime Bank, Linde Bangladesh and ICB Second MF.
The week’s worst losers included Progressive Life Insurance, Rupali Life Insurance, Pragati Life Insurance, Aamra Technologies, EBL NRB MF, Meghna Life Insurance, Standard Ceramics, Legacy Footwear, Monno Jute Stafflers and Information Services Network.
BBN/SSR/AD-14July12-1:01 pm (BST)
