DSE WEEKLY REVIEW
Dhaka stocks finish week in red
Dhaka stocks declined last week amid volatile trading with a sharp fall in the turnover as the mutual funds went for selling shares to make profits ahead of the June closing.
The benchmark general index of the Dhaka Stock Exchange, DSEX, lost 1.54 per cent, or 64.76 points, to finish at 4,149.16 points.DGEN, the old key index of the bourse, fell flat, losing 0.09 per cent or 4.16 points, to end at 4,425.48 points.
The DSEX and DGEN had gained 134.12 points and 129.97 points respectively in the earlier week.
The blue chip index of the bourse, DS30, closed at 1,547.55 points, shedding 0.35 per cent, or 5.45 points.
The average daily turnover of the bourse declined to Tk 650.73 crore, which is 23.30 per cent less than the earlier week’s Tk 848.37 crore.
Profit-taking moves by the institutional investors like mutual funds ahead of the June closing is normal as they have the urgency to offer their investors some profits, said a senior official of an asset management organisation.
Due to the recent market uptrend, the institutional investors moved to make profits, which was one of the key reasons behind last week’s volatility, although the investors’ confidence in the market was increasing, said a senior merchant banker.
The investors started becoming active on the trading floor in the beginning of May thanks to a number of positive moves taken by the government, including relaxation of loan provisioning rules, allocation of funds for the stock market and proposing incentives in the proposed financial budget 2013-2014.
As of June 26, the DSEX and the DGEN had gained around 800 points in the last two months.
Market operators said that prime minister Sheikh Hasina’s rejection of opposition BNP’s demand for a caretaker government might have increased tension among the investors ahead of the upcoming election.
Of the 294 shares and mutual funds traded in the week, 60 advanced, 231 declined and 3 remained unchanged.
Meghna Petroleum led the turnover chart as its shares worth Tk 154.94 crore changed hands.
-With New Age input
