Dhaka shares run out of steam for second week due to volatility
Dhaka shares fell last week, the second week in a row, as investors, baffled by the current downtrend in the market, continued to sell stocks to avoid further erosion of their investments.
DSEX, the key index of the Dhaka Stock Exchange, fell 2.41%, or 165.56 points, over the past week to close at 6,702.61 points on December 23, the last trading session of the week after losing 116.57 points the previous week.
The market lost in four of the week’s five sessions, as investors continued to sell stocks amid continued market gloom, traders said.
They said institutional investors remained passive in making investment decisions ahead of the year-end in December.
In addition, investors remained cautious as the media reported that the Ministry of Finance recently asked the Bangladesh Securities and Exchange Commission to ban the entry of unions and manipulators into the stock market and to strengthen oversight of transactions. suspicious stocks and underperforming companies.
The ministry issued the instructions following various allegations regarding recent capital market activities reported in the media.
The market has been in the doldrums for the past four months mainly due to a standoff between the Bangladesh Bank and BSEC over issues related to the stock market.
EBL Securities in its weekly market commentary said: “The stock indexes on the Dhaka Stock Exchange again ended in the red last week as investor sentiment was pessimistic due to uncertainties over regulatory action, the scenario of current liquidity in the money market and concerns about a negative impact on macroeconomic variables due to increasing inflationary pressure.
Of the 380 scripts traded on the DSE over the past week, 295 declined, 81 advanced, and five remained unchanged.
Average prices of stocks in the textile, non-bank financial institutions, pharmaceuticals and banking sectors fell by 3.5 percent, 3.1 percent, 2 percent and 1.6 percent, respectively.
P&C and life insurance stock prices climbed 8.8% and 1.7% respectively.
The DSES Sharia Index fell 2.64%, or 38.66 points, over the past week to close at 1,423.65 points.
DSE’s blue chip DS30 index fell 2.88%, or 74.47 points, to end at 2,511.99 points.
Daily average revenue on the DSE fell to Tk 762.93 crore last week from Tk 933.27 crore the week before.
BEXIMCO topped the turnover chart last week with its shares valued at Tk 440.51 crore changing hands.
One Bank, Fortune Shoes, Sonali Paper & Board Mills, Genex Infosys, Asia Insurance, GSP Finance Company, Sena Kalyan Insurance Company, IFIC Bank and SAIF Powertec were the other top revenue leaders for the week.