Dhaka stocks in the past week resumed fall, after a brief gain in the previous week following longest-ever bear run, as concerns over liquidity crisis in the financial market trickled in again.
DSEX, the key index of Dhaka Stock Exchange, lost 0.21 per cent, or 10.92 points, over the week to close at 5,275.83 points on Thursday, the last trading session of the week after gaining 20.57 points in the previous week.
Before the gain in the previous week, the core index lost 684 points in a record 13-week bear run.
The market started the week with bullish vibe, but could not continue with the momentum as investors resumed share sales amid on-going liquidity crisis in the financial sector, market operators said.
They said that the financial sector remained volatile with liquidity crisis, rising interest rate, huge non-performing loans and pressure on the exchange rate that spilled over into the capital market.
After the 13-week negative run, the market had gained marginally in the previous week amid assurance from prime minister Sheikh Hasina and finance minister AHM Mustafa Kamal to boost up the morale of the investors while the market regulator also took a number of measures to halt the slides.
Many investors preferred to examine the reaction of the initiatives at the market in the past week.
Investors also took cautious stance as the month of Ramadan began and ahead of the national budget when market typically remains slow.
EBL Securities in its weekly market review said, ‘DSE index has plunged for three sessions from Monday to Wednesday due to reports on liquidity shortage in the financial sector and fall in foreign investments in DSE.’
Before the latest 3-day plunge, market had gained 219 points in immediate three sessions as the government and Bangladesh Bank had decided to approve loans of Tk 856 crore for small-scale investors and the announcement had been made not to take any new IPO applications until changes to the rules are implemented, it said.
The key index, however, inched up in the last trading session as some investors went for bargain hunting following the market regulator’s decision to count share lock-in period from the date of debut trading instead of issuing IPO prospectus of a company.
Lock-in is a predetermined amount of time after an initial public offering where large stakeholders are restricted from selling their shares.
Average share prices of telecommunication, pharmaceutical, textile and non-bank financial institution sectors dropped 1.4 per cent, 0.9 per cent, 09.3 per cent and 0.1 per cent respectively.
Share prices of bank, engineering and energy sectors advanced by 0.8 per cent, 0.7 per cent and 0.3 per cent respectively.
The daily average turnover on DSE increased to Tk 428.96 crore in the past week from Tk 383.33 crore in the previous week.
Out of the 350 issues traded, 179 declined, 152 advanced and 20 remained unchanged.
DS30, the blue-chip index of DSE, dropped 1.03 per cent, or 19.23 points, to close at 1,851.35 points.
Shariah index DSES also shed 0.38 per cent, or 4.67 points, to finish at 1,220.31 points.
Fortune Shoes led the turnover chart with its shares worth Tk 132.98 crore changing hands in the week.
Monno Ceramic Industries, Esquire Knit Composite, Bangladesh Shipping Corporations, Power Grid Company, Indo-Bangla Pharmaceuticals, National Tubes, National Polymer Industries, Genex Infosys and Legacy Footwear were the other turnover leaders.
National Feed Mills gained the most in the week with a 27.84-per cent increase in its share prices while Eastern Bank was the worst loser, shedding 13.66 per cent.
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