Dhaka stocks slumped last week, the second week in a row, with a fall in the share prices of most of the traded scrips as investors remained cautious, keeping an eye on the upcoming monetary policy statement by Bangladesh Bank and a possible cut in the banks’ advanced deposit ratio.
DSEX, the key index of Dhaka Stock Exchange, lost 0.92 per cent, or 57.09 points, over the week to close at 6,122.23 points on Thursday after losing 123.52 points in the previous week.
Market operators said that the market continued falling as investors remained uncertain about the possible impact of the upcoming monetary policy for the second half of this fiscal year.
Many investors feared that Bangladesh Bank might announce a tightened monetary policy, they said.
The market lost 121 points in the first two sessions of the week, but the intensity of the trend eased a bit when a section of investors went for bargain hunting in the second half of the week, they said.
Moreover, the central bank also decided to cut the banks’ advanced deposit ratio to check their aggressive lending that might reduce the fund flow in the financial sectors, stockbrokers said.
As a result, many investors preferred to be on the sidelines that kept the turnover below Tk 400 crore in the week.
The daily average turnover on the bourse declined further to Tk 374.68 crore last week compared with that of Tk 446.32 crore in the previous week.
The share prices of most of the large capitalised sectors declined over the week while the financial sectors suffered most.
The average share prices of bank and non-bank financial institution sectors plunged by 2.8 per cent and 2.7 per cent respectively in the week that fuelled the volatility at the market.
Besides, the share prices of cement, engineering and energy declined by 3.3 per cent, 2.1 per cent and 0.7 per cent respectively.
A surge in the share prices of pharmaceuticals (2.8 per cent) and telecommunication (1.4 per cent) saved the market from further fall.
‘The prime bourse of the country passed a volatile week as investors remained undecided over the possible impact of the upcoming monetary policy statement for second half of FY 2017-18,’ said EBL Securities in a weekly market commentary.
Of the 338 companies and mutual funds traded, 236 declined, 83 advanced, and 19 remained unchanged.
DS30, the blue chip index of the DSE, shed 0.55 per cent, or 12.38 points, over the week to close at 2,241.12 points on Thursday after losing 41.71 points in the previous week.
Shariah index DSES, however, gained 0.89 per cent, or 12.37 points, to close at 1,403.91points.
Square Pharmaceuticals led the turnover chart over the week with it shares worth Tk 156.93 crore changing hands.
Grameenphone, IFAD Autos, Dragon Sweater, BD Thai, City Bank, National Tubes and Shahjalal Islami Bank were the other turnover leaders.
Eastern Lubricants gained the most in the week with a 12.26-per cent increase in its share prices, while Alif Manufacturing Company was the worst loser, shedding 26.32 per cent.
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