DSE Weekly Review

Stocks drop for 6th week

Staff Correspondent | Published: 22:18, Feb 27,2021


Dhaka stocks declined in the past week, extending the losing streak to the sixth week, as investors, unnerved by prolonged downward trend on the market, kept selling shares.

DSEX, the key index of the Dhaka Stock Exchange, lost 1.09 per cent, or 59.6 points, over the past week to close at 5,416.39 points on February 25, the last trading session of the week.

The DSEX lost 492.6 points in the last six weeks. Before the six-week loss, the DSEX had gained 1,045 points in seven weeks.

The market remained closed on February 21 on the occasion of International Mother Language Day.

The key index started the week with a plunge of 90.77 points on February 22 and continued the trend in the next day as investors kept selling shares amid prolonged bearishness on the market, market operators said.

The market, however, recovered in the last two sessions on the week as a section of investors went for bargain hunting, they said.

The continued bear run on the market forced many investors to watch the market movement from the sidelines, they said.

So, the daily average turnover on the DSE slumped to Tk 583.82 crore in the past week compared with that of Tk 887.53 crore in the previous week.

EBL Securities in its weekly market commentary said, ‘The investors’ participation plummeted in the past week as investors stayed cautious due to the ongoing volatility on the market.’

A very few companies dominated the trading activities that showed vulnerability of the market.

Only six companies accounted for 50 per cent of the week’s total turnover while Bangladesh Export Import Company alone logged 23 per cent of the turnover with trading of its shares worth Tk 539.22 crore over the week.

Share prices of more than 90 companies hit their floor prices over the week due to volatility on the market.

The BSEC on March 19, 2020 introduced the floor price system to bar companies’ share prices from falling below a certain level amid the COVID-19 outbreak.

The market has been in the doldrums for about a couple of months as investors have been struggling with a number of issues, including the setting of ceiling on margin loan rate, approval of a number of companies’ initial public offerings in a short period of time, dependence on a few companies and repeated changes in regulatory policies.

Share prices of the non-bank financial institution sector plunged in the past week after the Bangladesh Bank issued a circular on February 24 that the NBFIs which have classified loan ratio more than 10 per cent and capital adequacy ratio below 10 per cent would not be allowed to declare any dividend.

Share prices of eGeneration Limited, which made its debut on the DSE on February 23, jumped by 147 per cent to close at Tk 24.7 per cent on February 25.

Average share prices of miscellaneous, NBFI, pharmaceutical and bank sectors dropped by 3.4 per cent, 2.6 per cent, 1.1 per cent and 0.6 per cent respectively.

Out of the 365 issues traded in the past week, 126 declined, 121 advanced and 118 remained unchanged.

DSE’s blue-chip index DS30 dropped by 1.9 per cent, or 39.78 points, to finish at 2,065.8 points.

Shariah index DSES also shed 1.34 per cent, or 16.61 points, over the past week to close at 1,225.88 points.

Robi Axiata, British American Tobacco Bangladesh, LankaBangla Finance, Beximco Pharmaceuticals, Summit Power, Walton Hi-Tech Industries, Square Pharmaceuticals, LafargeHolcim Bangladesh and Beacon Pharmaceuticals were the other turnover leaders.

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