Dhaka stocks slumped last week, stretching the record losing streak to the 13th consecutive week, as investors were extremely worried about the market after the finance minister commented that the recent fall was normal, market operators said.
DSEX, the key index of Dhaka Stock Exchange, lost 1.04 per cent, or 55.23 points, over the week to close at 5,266.18 points on Thursday, the last trading session of the week.
The index lost 684 points in the 13-week bear run, the longest ever losing streak.
The market began the week with a brief gain but plunged in the following two sessions as investors went for panic selling following the finance minister’s comment, market operators said.
Finance minister AHM Mustafa Kamal, after a meeting with officials of Bangladesh Securities and Exchange Commission, on April 23 said that he found no problem at the capital market despite the longest bearish spell at DSE.
The market was closed on April 22 on the occasion of Shab-e-Barat.
Market operators said the remark disheartened investors as the downward trend erased Tk 30,503 crore in market capitalisation.
Market experts said the corrections of such length were highly unusual.
EBL Securities in its weekly market commentary said, ‘The prevailing bearish trend coupled with the finance minister’s latest remarks on the capital market made investors frustrated.’
It also said, ‘Deficiency of quality stocks, lack of investors’ confidence and shortage of liquidity continued to take toll on stock prices.’
Some affected investors took to the streets against the relentless fall in stock prices again in last week. They demanded an immediate resignation of Bangladesh Securities and Exchange Commission chairman M Khairul Hossain for his failure in reviving the market.
The capital market has been passing through a tough phase because of a host of reasons including liquidity shortage in the financial sector, Grameenphone’s tussle with the government over Tk 12,500 crore in dues, rumours involving a number of companies’ foreign investment deals and unregulated share sales by directors of the listed companies, market operators said.
The average share prices of all the large capitalised sectors dropped in the week.
The share prices of general insurance, energy, telecommunication and bank dropped by 6.2 per cent, 5.6 per cent, 1.4 per cent and 0.13 per cent respectively.
The share prices of all the multinational companies except Marico Bangladesh dropped over the week.
The share prices of United Power Generation & Distribution Company Limited plummeted by 5.0 per cent as BSEC rejected its application for considering a share purchase agreement between the company and a foreign company regarding sales of shares of UPGDCL held by United Mymensingh Power Limited.
Some institutional investors including state-run Investment Corporation of Bangladesh went on bargain hunting to revive the investors’ confidence that saved the market from further fall.
The daily average turnover on DSE increased to Tk 341.57 crore in last week from Tk 308.15 crore in the previous week.
Out of the 348 issues traded last week, 224 declined, 96 advanced and 28 remained unchanged.
DS30, the blue-chip index of DSE, lost 1.77 per cent, or 33.64 points, to close at 1,863.94 points.
Shariah index DSES shed 1.04 per cent, or 12.74 points, to finish at 1,214.87 points.
Fortune Shoes led the turnover chart with its shares worth Tk 100 crore changing hands in the week.
Monno Ceramic Industries, United Power Generation Company, Bangladesh Submarine Cable Company, National Tubes, BRAC Bank, Monno Jute Stafflers, Bangladesh Shipping Corporation, Esquire Knit Composite and Fine Foods were the other turnover leaders.
Standard Ceramic Industries gained the most on the day with a 26.35-per cent increase in its share prices while Agrani Insurance was the worst loser, shedding 19.69 per cent.
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