The week featured all five trading sessions–of them, two sessions saw marginal gain while three sessions witnessed sharp decline.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), came down below 4,800-mark and closed the week at 4,772.56 points, shedding 127.05 points or 2.59 per cent.
The two other indices also saw significant fall. The DS30, comprising blue chips, index lost 53.79 points or 2.96 per cent to close at 1,760.90 points. The DSE Shariah Index fell 38.96 points or 3.40 per cent to close at 1,106.86 points.
The port city bourse Chittagong Stock Exchange (CSE) also saw steep decline for four consecutive weeks with its Selective Categories Index-CSCX – plunged 301.38 points or 3.25 per cent to close the week at 8,952.62 points.
The market’s participation dropped sharply and the total turnover for the week plummeted to Tk 16.27 billion against Tk 31.35 billion the week before.
The daily turnover for the week averaged Tk 3.25 billion, registering a decline of 48 per cent over the previous week’s average of Tk 6.27 billion.
The investors’ mostly focused on pharma, power and engineering – the sectors that accounted for 16.6 per cent, 16.1 per cent and 14.9 per cent of the week’s total turnover respectively.
“Stocks prolonged its downward trend last week with 48 per cent decline in overall investors’ participation,” said International Leasing Securities in its weekly analysis.
It said stocks from the major sectors including large-cap local companies and multinationals along with several recent IPOs witnessed major price depreciation.
“The gradual decline in the daily turnover mostly fuelled the massive investors’ sell-off across major sectors,” according to the International Leasing.
IDLC Investments said. “Investors tried to save whatever little gain they had in the last rally and in the process further pulled down the index”.
“Fresh fund injection almost came to a halt as investors fear further correction. The benchmark index broke 4,800 points support level as frustrated investors tried to escape the downfall,” said the merchant bank.
LankaBangla Securities said: “The benchmark index observed another week of correction as investors seem to be acting cautiously as they lack any market direction”.
The steep decline in turnover last week shows lack of investors’ participation at this price level, the brokerage said, adding that market needs some consolidation at this level for reversal. The next support level for the market is around 4,700-level.
All the major sectors yield negative returns last week, except food and allied, which witnessed marginal appreciation of 0.22 per cent.
Fuel and power registered the highest loss of the week going down by 6.94 per cent, followed by telecommunication at 6.16 per cent. Non-banks, pharmaceuticals and banks also lost 3.73 per cent, 2.59 per cent and 0.79 per cent respectively.
The losers took a strong lead over the gainers as out of 316 issues traded, 244 declined, 48 advanced and 24 remained unchanged on the DSE trading floor.
Bata Shoe, BATBC, ICB and Bengal Windsor Thermoplastic made corporate declaration last week.
Bata Shoe and BATBC declared 175 per cent and 100 per cent interim cash dividend respectively, ICB declared 45 per cent cash and Bengal Windsor Thermoplastic recommended 23 per cent cash dividend.
The market capitalisation of the DSE went down sharply by 2.88 per cent after it was Tk 3,248.82 billion on the opening day of the week and it stood at Tk 3,154.56 billion on the closing day of the week.
Western Marine Shipyard dominated the week’s top turnover chart, with shares worth Tk 723.87 million changing hands followed by Jamuna Oil, Lafarge Surma Cement, Beximco Pharma and Khan Brokers PP Woven Bag.
Monno Stafflers was also the week’s top gainer, posting a rise of 11.02 per cent while Mithun Knitting was the week’s worst loser, plunging by 23.72 per cent.