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Dhaka stocks fall for second week

Staff Correspondent | Published: 22:21, Oct 17,2020

 
 

A file photo shows people monitoring share price movements on a computer screen at a brokerage house in the capital. Dhaka stocks in the past week fell for the second consecutive week as investors continued to sell-off shares to avoid losses amid a market slowdown in recent weeks while a number of large capitalised companies surged on expectation of better financial results. — New Age photo

Dhaka stocks in the past week fell for the second consecutive week as investors continued to sell-off shares to avoid losses amid a market slowdown in recent weeks while a number of large capitalised companies surged on expectation of better financial results.

DSEX, the key index of the Dhaka Stock Exchange, declined by 0.91 per cent, or 44.67 points, over the past week to close at 4,872.3 points on October 15, the last trading session of the week after losing 78.35 points in the week before.

The DSEX lost 232.5 points in the last four weeks with one positive week.

The core index dropped in three out of five sessions last week as investors continued cautious trading amid lingering slowdown on the market, market operators said.

The market was unstable throughout the week due to the investors’ increased attention to the insurance sector, they said.

The insurance sector logged around 40 per cent of the week’s total turnover.

After a huge surge in share prices of most insurance shares, a large number of investors flocked to the sector amid sell-off of shares of companies in other sectors that led to chaos on the market.

Market operators said that this created the opportunity for manipulators to make a better exit from the sector.

Many investors preferred to stay on the side-line and declined to buy insurance shares at higher prices.

A group of investors also remained active in mutual funds which registered 11 per cent of the week’s total turnover.

Market experts said that unusual trading by some investors in the two sectors puzzled other investors.

Surge in share prices of large capitalised companies, including Grameenphone, Square Pharmaceuticals, British American Tobacco Company and United Power Generation Company, saved the market from a significant fall.

Investors bought shares of those companies expecting better financial results in the July-September period.

DSE’s blue-chip index DS30, however, added 0.06 per cent or 1.08 points to finish at 1,670.45 points.

Daily average turnover on the DSE plummeted to Tk 671.64 crore in the past week compared to Tk 920.99 crore in the previous week.

Investors also remained worried about the possible second wave of the coronavirus outbreak as the government was taking preparations to tackle it.

In addition, a group of investors moved to the primary market after the securities regulator approved the initial public offering of nine companies in just three months which affected the secondary market.

Average share prices of general insurance, textile, nonbank financial institutions and banks plunged by 4.8 per cent, 4.2 per cent, 4.0 per cent and 1.4 per cent respectively.

Share prices of telecommunication, pharmaceutical and energy sectors advanced by 4.1 per cent, 0.6 per cent and 0.2 per cent respectively.

Out of the 359 issues traded in the past week, 262 declined, 68 advanced and 29 remained unchanged.

DSES, the Shariah index of the bourse, also gained 0.38 per cent, or 4.17 points, over the past week to close at 1,112.97 points.

Asia Pacific General Insurance led the turnover chart with shares worth Tk 107.59 crore traded last week.

Continental Insurance, Beximco Pharmaceuticals, Walton, Bangladesh Export Import Company, BRAC Bank, Rupali Insurance Company, Bangladesh Finance and Investment, Sandhani Life Insurance and Republic Insurance Company were the other turnover leaders.

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