DSE WEEKLY REVIEW
Stocks end week plunging amid monetary policy fear
Dhaka stocks plunged last week with heavy fall of the turnover as the investors fear that the new monetary policy announced by the central bank would
squeeze the liquidity flow to the capital market.
DSEX, the benchmark general index of Dhaka Stock Exchange, lost 5.79 per cent or 244.42 points, to close at 3,979.20 points.
DGEN, the old benchmark general index of the bourse, lost 5.61 per cent or 256.26 points, to close at 4,312.21 points.
The blue-chip index of the bourse, DS30, lost 7.53 per cent or 120.41 points, to close at 1,478.27 points.
In the previous week market also witnessed marginal fall.
Average daily turnover of the Dhaka bourse declined by 45.14 per cent to Tk 469.29 crore from previous week’s Tk 855.40 crore.
Market operators said investors were sceptical throughout the week ahead of the announcement of monetary policy for first six months of the current financial year.
They said the immediate impact of the monetary policy was negative as the government reduced the private sector credit target.
‘This hinted that the liquidity flow will be less to the market which dejected the investors,’ said a stockbroker.
He said the market was in good momentum recently following different government initiatives but uncertainty was mounting over the investors fearing intense political unrest after Eid-ul-Fitr and the monetary policy as well.
In the latest monetary policy announced on Thursday, Bangladesh Bank cut the six-moth credit growth in the private sector to 15.5 per cent by December 2013 and 16.5 per cent by June 2014 from that of 18.3 per cent by December 2012 and 18.5 per cent by June 2013.
‘The whole week belongs to sellers. Four out of five days were red due to constant sell pressure from the investors,’ stated LankaBangla Securities in its weekly market commentary.
’Due to a big fall on the first day of the week after a similar fall in the end of the last day of the week, panic started to creep in to the nerves of the investors,’ it said.
Of the 295 traded issues of the week 235 declined, 52 advanced and eight remained unchanged.
All the major sectors ended in the red last week with fuel and power sector losing the most by 10.12 per cent followed by non-bank financial institutions that lost 7.85 per cent.
Telecommunications lost 7.60 per cent, bank lost 2.02 and pharmaceuticals sector lost 2.72 per cent.
-With New Age input
