Dhaka stocks declined 4.98 percent last week, triggered by panic sell-offs. Fears of a further market fall ran deep among investors.
The benchmark general index, DGEN of DSE, closed at 6,259 points, after declining 327.91 points for huge sell-offs. In an attempt to bring more discipline to the market, the Security and Exchange Commission has decided to take legal action against alleged market manipulators. The decision comes in response to a probe body report on the stockmarket crash, said BRAC EPL, a leading stockbroker, in its daily market analysis.
The news of filing cases against the manipulators created panic among the investors, said a stockbroker.
Some investors deliberately spread the rumour in the market that the market would fall further following the initiatives of SEC to file cases against the manipulators, he added.
Prof Mahmood Osman Imam, who teaches finance at Dhaka University, said the last two days’ gain and fall were unusual as turnover was low.
“Somebody was playing tricks behind the scene,” he alleged.
Imam, also a member of the DSE index development committee, advised investors to be careful before making new investments in the market.
Moreover, the SEC has recommended reforms to the book-building method and has announced its intention to set a uniform margin loan policy soon.
Turnover declined significantly last week as the daily average turnover stood at Tk 883.9 crore, which is 51.2 percent lower from the previous week’s turnover.
Of the total 265 issues traded on the premier bourse, 251 declined and 14 advanced last week.
The cement sector was the only gainer sector, which advanced 1.10 percent, while Grameenphone, which represents the telecoms sector, declined 13.39 percent.
The banks declined 3.89 percent, non-bank financial institutions 4.44 percent, chemicals and pharmaceuticals 4.18 percent, fuel and power 6.16 percent and textile 6 percent respectively.
RN Spinning Mills topped the turnover leader with 1.57 crore shares worth Tk 162 crore changing hands.
The Third Investment Corporation of Bangladesh Mutual Fund was the biggest gainer of the week, posting a 7.51 percent rise. BD Welding Electrodes was the worst loser, slumping by 19.40 percent.
-With The Daily Star input
