Dhaka stocks declined last week, second week in a row, with a significant decrease in turnover as investors preferred a ‘wait-and-see’ policy amid unease on the political front.
The benchmark general index of Dhaka Stock Exchange, DSEX, closed at 3,948.44 points on Thursday, shedding 1.62 per cent or 64.93 points in the week.DS30, the blue-chip index of the DSE, lost 1.53 per cent, or 22.38 points, to close at 1,441.93 points.
The daily average turnover of the bourse dropped to Tk 279.19 crore last week from that of Tk 406.42 core in the previous week.
The DSEX and the DS30 lost 149.33 points and 70.50 points respectively in the last two weeks.
Market operators said investors remained shaky due to an unstable political situation after the International Crimes Tribunal-1’s verdict against the BNP standing committee member, Salauddin Quader Chowdhury.
A large number of investors adopted ‘wait-and-see’ strategy amid the instability which pushed the bourse’s daily average turnover down below Tk 300 crore-mark, they said.
A senior merchant banker said the market had suffered in the previous week because of unrest in the ready made garment industries over pay hike and the market saw decreased participation last week due to the political instability.
He said that political unrest ahead of the next national elections pushed the country’s economy to a stagnant situation which also dampened the investors’ mood in recent times.
A decline in foreign investors’ participation in the market last month also made other investors cautious, he added.
Of the 295 shares and mutual funds traded last week, 86 advanced, 196 declined and 13 remained unchanged.
‘Fear of potential turmoil in the political frontier and investors’ preference for naturalising short-term return ahead of Eid-ul-Azha streamlined this week’s [last week] market sentiment,’ IDLC Investments said in its market commentary.
‘In the meantime, cautious trading based on turnaround situations alongside shaky confidence kept market scenario in an indecisive mood,’ it also said.
Bangladesh Submarine Cable Company Limited led the turnover leaders last week with its shares worth Tk 62.21 crore changing hands.
-With New Age input
