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Dhaka stocks dip for 3rd week

Staff Correspondent | Published: 22:19, Nov 28,2020

 
 

Dhaka stocks dropped last week, extending the losing streak to the third week, as investors continued selling shares amid sluggishness on the market while general insurance and mutual fund sectors rebounded strongly in the week.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.22 per cent, or 10.87 points, over the past week to close at 4,869.09 points on November 26, the last trading session of the week.

The DSEX lost 72.88 points in the last three weeks.

Despite gaining in three days in the five-day week, the key index finished the week negative.

The market has recently been struggling with the dominance of only two sectors, overflow of initial public offerings, poor corporate declaration, adjustment of bonus shares and concerns over looming second wave of coronavirus outbreak.

The market has become almost static again in recent weeks as share prices of around 85 companies have remained stuck at their floor prices. The number continues rising.

The Bangladesh Securities and Exchange Commission on March 19 introduced the floor price mechanism to check free fall on the market amid the COVID-19 outbreak in the country.

Among the large capitalised companies, share prices of Grameenphone, Square Pharmaceuticals, Investment Corporation of Bangladesh and United Power Generation and Distribution Company plunged in the week that weighed heavily on the index.

The insurance and mutual fund sectors have kept dominating the market, adversely affecting the market, market operators said.

The general insurance and mutual fund sectors rebounded firmly, soaring by 14.7 per cent and 5.3 per cent respectively after a plunge in the previous week.

The general insurance sector logged 33 per cent and the mutual fund sector 14 per cent of the week’s total turnover on the DSE.

EBL Securities in its weekly market commentary said, ‘The subscription of Robi Axiata Ltd’s IPO took place last week where investors shifted some money from the market to bid for the IPO shares though many new comers had also included themselves to the market.’

‘Although investors kept positively engaging in general insurance and mutual fund sectors, anxious investors were observant on other sectoral issues due to an obscure future since the COVID-19 infections in the past few days observed a rising trend,’ it said.

Robi’s Tk 523-crore initial public offering subscription began on November 17 and ended on November 23.

The average share prices of non-bank financial institution, telecommunication, bank and energy sectors dropped by 2.9 per cent, 2.4 per cent, 0.7 per cent and 0.4 per cent respectively.

The daily average turnover on the DSE slumped to Tk 629.78 crore in the past week compared with that of Tk 781.82 crore in the previous week.

Out of the 359 issues traded in the past week, 140 declined, 144 advanced and 77 remained unchanged.

DSE’s blue-chip index DS30 dropped by 0.68 per cent, or 11.64 points, to finish at 1,689.7 points.

Shariah index DSES dipped by 0.89 per cent, or 10.03 points, over the past week to close at 1,118.85 points.

Beximco Pharmaceuticals led the turnover chart with shares worth Tk 173 crore traded last week.

Nitol Insurance Company, Bangladesh Export Import Company, Northern Islami Insurance, ADN Telecom, Pioneer Insurance Company, Square Pharmaceuticals, Asia Pacific Insurance, Continental Insurance and BRAC Bank were the other turnover leaders.

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