Dhaka stocks fell sharply last week as investors went for selling shares following a central bank move against some banks for increasing their capital market investment beyond the allowable limit. Market operators said investors also booked some profit after gains in the previous week. The key index of Dhaka Stock Exchange, DSEX, lost 2.88 per cent, or 135.59 points, to close at 4,566.86 points on Wednesday. The market remained closed on Thursday on the occasion of May Day.
Market operators said the market started the week on a negative note due to some profit- making move by investors after the key index of the bourse had registered a straight six-trading session gain.
A media report that the central bank fined some banks as they had increased their capital market investment limit violating rules also made investors shaky, they said.
The losing vibe continued on the second and third trading sessions of the week as investors were anticipating that the Bangladesh Bank’s move might result in decline in banks’ investment in the capital market, said operators.
The market on Wednesday closed flat due to bargain hunting of some investors in the last few minutes of trading that saved the market from significant fall, they said.
Operators said that the market might show upbeat trend this week as the fund of the government’s refinance scheme might be injected into the market as the finance ministry had scrapped a condition that created difficulty in releasing loans.
DS30, the blue-chip index of the bourse, finished at 1,671.93 points, shedding 2.81 per cent or 48.27 points last week.
The Shariah index of the bourse, DSES, closed at 1,018.20 points, declining by 2.12 per cent or 22.04 points in the week.
Daily average turnover of the DSE declined to Tk 423.41 crore last week from Tk 494.51 crore in the previous week.
Of the 301 shares and mutual funds traded, 45 advanced, 248 declined and eight remained unchanged.
‘Swift corporate declarations and quarterly earnings announcement prompted investors to re-think,’ IDLC Investments said in its weekly market commentary.
It said, ‘Depressed earnings announcement started beating the market sentiment from the very beginning of the week, putting investors in a cautious mood. Subsequently, market participants started switching across sectors and scrips and continued re-balancing their portfolio.’
Having called for larger corrections, panic started and fuelled increased level of selling pressure, it said.
Shares of Meghna Petroleum traded most with the company’s shares worth Tk 90.13 crore changing hands in the week.
Grameenphone, Lafarge Surma Cement, Renata, Heidelberg Cement, Padma Oil, Square Pharma, Olympic Industries, Southeast Bank and Bangladesh Submarine Cable Company were among the other turnover leaders.
ACI Limited gained the most in the week with a 15.41-per cent increase in its share price, while Delta Spinners lost the most, shedding 41.59 per cent.
-With New Age input
