Dhaka stocks dipped in the past week, stretching the losing streak to the fourth week as investors continued selling shares amid an alarming deterioration in the COVID-19 outbreak situation in the country.
The withdrawal of floor prices of 66 companies also contributed to the market fall in the week, market operators said.
DSEX, the key index of the Dhaka Stock Exchange, lost 0.3 per cent, or 15.76 points, over the past week to close at 5,254.78 points on April 8, the last trading session of the week.
The DSEX lost 313.76 points in the last four weeks.
Though the index gained in most of the sessions in the week, the market ended the week in the negative trajectory.
The market started the week with a plunge of 181 points on April 4 after the government declared seven-day countrywide restrictions starting from April 5 to check the spread of the virus.
As the share market remained open during the restrictions and the restrictions were loosely followed in Dhaka and elsewhere in the country, investors went for bargain hunting for the next three days.
The Bangladesh Securities and Exchange Commission on April 4 increased margin loan ratio to 1:0.8 from 1:0.5 that also attracted many investors to the market in the three days, market operators said.
But, investors went for heavy sales again in the last trading day of the week as the BSEC on April 7 withdrew the floor prices of shares of 66 companies after a year.
Earlier on March 19, 2020, the BSEC introduced the floor price system to bar share prices of listed companies from falling below a certain level to check free fall in share prices amid the COVID-19 outbreak.
Trading hours on the country’s two stock exchanges — the DSE and the Chittagong Stock Exchange, have been shortened to two hours, from 10:00am to 12:00pm, during the seven-day restrictions.
The country on Saturday reported 5,343 new cases of infection and 77 more deaths from coronavirus, the highest ever COVID-19 deaths.
EBL Securities in its market commentary said, ‘Despite the COVID-19 scare and the ongoing lockdown, the market has managed to hold on to its current level due to positive regulatory initiatives such as the increasing of margin loan rate to 1:0.8 from 1:0.5 and the government easing lockdown restrictions over time.’
The daily average turnover on the DSE also dropped to Tk 464.92 crore in the past week compared with that of Tk 507.21 crore in the previous week.
The investors’ attention was mostly to insurance scrips over the week.
Share prices of general insurance advanced by 11.2 per cent in the week.
Average share prices of textile, engineering, energy and bank sectors dropped by 5.8 per cent, 2 per cent, 1.1 per cent and 0.2 per cent respectively.
Out of the 368 issues traded in the past week, 205 declined, 108 advanced and 54 remained unchanged.
Shariah index DSES also shed 0.41 per cent, or 4.88 points, over the past week to close at 1,197.66 points.
DSE’s blue-chip index DS30, however, increased by 0.36 per cent, or 7.09 points, to finish at 1,990.39 points.
BEXIMCO led the turnover chart in the past week with its shares worth Tk 236.66 crore changing hands.
Robi Axiata, Asia Pacific Insurance Company, Beximco Pharmaceuticals, Provati Insurance Company, LankaBangla Finance, LafargeHolcim Bangladesh, Summit Power, British American Tobacco Bangladesh, Desh General Insurance Company were the other turnover leaders.
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