Record stocks bear run stretches to 11th week

Staff Correspondent | Published: 00:00, Apr 14,2019 | Updated: 23:06, Apr 13,2019


Dhaka stocks kept plummeting in the past week, stretching the record bear run to the 11th consecutive week, as investors, panicked by the relentless fall, continued with sell-offs.
Out of the 351 traded issues, 280 declined, just 52 advanced and 19 remained unchanged.
DSEX, the key index of Dhaka Stock Exchange, slumped by 2.45 per cent, or 133.52 points, over the week to close at 5,326.39 points on Thursday, the last trading session of the week.
DSEX lost 624 points in the 11-week bear run, which is the longest ever.
In line with the previous week’s trend, the market began to fall from the first session of the week. DSEX’s fall intensified in the next three sessions as panic spread among the investors but the key index gained in the last session amid regulatory intervention, market operators said.
They said that the unstoppable volatility in the market shattered confidence and trust of the investors.
Investors preferred withdrawing their holdings before facing further fall, they said.
The capital market has been passing through a tough phase because of a host of reasons, including liquidity shortage, poor dividend declarations by companies and investors’ lack of trust in the market regulator.
Index began to fall at the end of January when the issue of banks’ liquidity crisis surfaced. The situation became so bad that investors took to the streets protesting at continuous fall in the market. In its 11-week bear run, the market lost Tk 22,191 crore in capitalisation.
Even efforts from the regulator became feeble on the mounting sale pressure from the investors.
But, the volatility was eased in the last session of the week as some of the institutional investors, directed by the regulator, went for buying to prop up the sinking DSEX.
EBL Securities in its weekly market commentary said ‘the ongoing liquidity crisis in the financial sector, hike in interest rate, poor dividend declarations by many of the companies, increasing of non-food inflation and resurfacing of due issue of Grameenphone stirred anxiety among the investors in the last few weeks.’
The largest capitalised company GP was declared significant market power and then it was asked to pay more than Tk 12,500 crore in dues in last few weeks adding fuel to the volatility.
Among the large capitalised companies, share prices of United Power Generation Company, GP, BRAC Bank and Investment Corporation of Bangladesh plummeted by 12.7 per cent, 10.5 per cent, 4.8 per cent and 4.1 per cent respectively.
Average share energy, telecommunication, non-bank financial institution and bank plunged by 5.6 per cent, 4.9 per cent, 1.9 per cent and 1.6 per cent respectively.
The daily average turnover on DSE slumped to Tk 334.69 crore in the last week from Tk 402.53 crore in the previous week. DS30, the blue-chip index of DSE, plunged by 2.33 per cent, or 45.49 points, to close at 1,902.98 points.
Shariah index DSES, dropped by 2.85 per cent, or 36.20 points, to finish at 1,233.22 points. United Power Generation Company led the turnover chart with its shares worth Tk 100.68 crore changing hands in the week.
British American Tobacco, Grameenphone, Fortune Shoes, Monno Ceramic Industries, Bangladesh Submarine Cable Company, Esquire Knit Composit, Eastern Cables, Reckitt Benkiser and Square Pharmaceuticals were the other turnover leaders.
Eastern Cables gained the most on the day with a 12.85-per cent increase in its share prices while Heidelberg Cement Bangladesh was the worst loser, shedding 20.75 per cent.

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