Business Reporter :
The trend of stock market was negative last week although the political situation apparently became normal ahead of City Corporation elections.
Stocks downed further on Thursday, with key index of the Dhaka Stock Exchange (DSE) dipping below the 4,200-mark, marking a 17-month low.
“Retail investors are on selling mood fearing further fall of stock prices while big players and institutional investors have become almost reluctant to make investments, pulling the market down for four consecutive days,” said an analyst.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 181.13 points or 4.14 per cent to close the week at 4,192.21points.
However, the two other indices ended red. The DS30 index, comprising blue chips lost 75.59 points or 4.53 per cent to close at 1.592.76 points. The DSE Shariah Index shed 36.00 points or 3.39 per cent to close at 1,024.88 points.
The total turnover for the week stood at Tk 23.66 billion against Tk 17.10 billion the week before.
The daily turnover for the week averaged Tk 4.73 billion, registering an increase of 10.72 per cent over the previous week.
The investors’ activity was mostly focused on sub-marine cable, sea food, textile and power – these sectors that accounted for 33 per cent, 23 per cent, 20 and 19 per cent respectively of the week’s total turnover.
“The ‘psychological’ support at 4,300-level also worked as a catalyst to stop further sell-off,” said a stockbroker.
“The stock market witnessed as down trend last week amid the improvement in the country’s political situation,” said an analyst of International Leasing Securities.
Even though investors preferred short-term trading in the earlier sessions, position taking in several fundamental issues created moderate buying pressure in last two sessions of the week, said the International Leasing.
The market capitalisation of the DSE went down slightly by 3.16 per cent as it was Tk 3,140.06 billion on the opening day of the week and it stood at Tk 3040.89 billion on closing day of the week.
Bangladesh Submarine Cable Company Limited dominated the week’s top turnover chart, with turn over Tk 416,746,000.
United Power Generation and Distribution Company also continued to dominate the top turnover chart, with shares worth Tk 470.76 million changing hands followed by BSCCL, KPCL, Western Marine and Mozzafar Hossain Spinning Mills.
Gemini Sea Food was the last day’s top gainer, posting a rise of 9.22 per cent while Northern Insurance was the worst loser, plunging by 12.5 per cent following its price adjustment after record date.
“In absence of hope in sustainable political stability, economic outlook remained bleak for investors turning them to sell off, regardless of their holdings’ price level,” said a merchant banker.
