Dhaka stocks declined last week, for the fourth week in a row, with a plummeting turnover as intense political tension drove the panicked investors to sell-off shares.
The benchmark general index of Dhaka Stock Exchange, DSEX, lost 1.15 per cent, or 44.28 points, to finish at 3,799.27 points last week.DS30, the blue-chip index of the DSE, finished at 1,361.04 points last week, shedding 1.94 per cent, or 26.91 points.
The DSEX and DS30 have now lost 298.50 points and 151.40 points respectively in the last four trading sessions.
Market operators said the market had recorded significant fall after the Eid-ul-Azha holidays due to the political tension with the DSEX and DS30 losing 79.67 points and 29.14 points respectively in the first two trading sessions of the week.
The market, however, rebounded on Tuesday as the main opposition BNP proposed a polls-time government format that made the investors optimistic of a political consensus before the deadline of October 25 set by the opposition, said the operators.
The DSEX and DS30 advanced Tuesday and Wednesday thanks to this optimism.
However, as the political parties stuck to their respective positions till Wednesday, investors opted for sell-offs apprehending further confrontation surrounding the polls-time government, a senior merchant banker said.
If the main opposition and the ruling party fail to reach a consensus the crisis will deepen and that will obviously hit the stock market hard.
The daily average turnover of the bourse declined to Tk 198.62 crore from that of the earlier week’s Tk 238.06 crore.
Of the 293 shares and mutual funds traded in the week, 72 advanced, 211 declined and 9 remained unchanged.
‘Excitement in political frontier centering on imminent political issues represented a snapshot throughout the week. This created a vibe amid investment community in a dynamic shape,’ IDLC Investments said in its daily market commentary.
‘Consequently, waning tone stretched after long closure of Eid-Ul-Adha,’ said IDLC.
‘Besides, investors were seemed to remain much cautious and focusing on short-term positioning as political phenomenon was changing frequently,’ it also said.
Argon Denims led the turnover chart as its shares worth Tk 57.29 crore changed hands.
Envoy Textiles, Square Pharma, Generation Next Fashions, Bangladesh Submarine Cable Company, Bangladesh Building Systems, United Commercial Bank, JMI Syringes and Medical Devices, Grameenphone and Delta Life Insurance were the day’s other turnover leaders.
Libra Infusions gained the most in the week as the price of its shares increased by 17 per cent, while Fine Foods lost the most, 19.73 per cent.
-With New Age input
