Dhaka stocks post longest-ever weekly bear run

Dhaka stocks dropped further in the past week, stretching the losing spell to a record eighth week, as investors, baffled by the relentless fall, went into panic sales to avoid further losses.
DSEX, the key index of Dhaka Stock Exchange, slumped by 1.5 per cent, or 85.66 points, over the week to close at 5,570.15 points on Thursday, the last trading session of the week.
DSEX lost 380 points in the eight- week bear run. 
The country’s capital market has never experienced such a long weekly losing spell, DSE officials said.
The trading on the bourse in the past week was truncated to four sessions due to public holiday on March 17 on the occasion of the 99th birth anniversary of the country’s founding president Sheikh Mujibur Rahman.
DSEX saw three days of fall and one day of brief gain in the week as investors became nervous following relentless fall of index.
Many investors preferred to be in the side line to observe the next move of the market while most of the investors continued selling shares fearing further loss.
The daily average turnover on DSE declined further by 25.45 per cent to Tk 430.04 crore in last week from Tk 576.82 crore in the previous week.
Financial experts said that volatility in the banking sector spilled over into the other financial sectors including the capital market.
Investors feared that the financial scrips would not declare better dividends for the year 2018.
EBL Securities in its weekly market commentary said ‘During this week, institutional investors persistent their cautiousness amid liquidity crunch while small investors were not confident enough to inject fresh fund, taking the market turnover further low.’
‘Moreover, Instability of the country’s banking system amid rising bad loans, liquidity shortage and rising interest rate became a heavy drag on the investors’ mood,’ it said.
Average share prices of bank, non-bank financial institution, energy and textile dropped by 3.1 per cent, 2.3 per cent, 1.9 per cent and 1.5 per cent respectively.
The share prices of the textile sector have been falling recently as the government proposed fresh gas price hike that could increase the production cost in the sector, market operators said.
Among the large capitalised scrips, share prices of BRAC Bank, Berger Paint Bangladesh and Investment Corporation of Bangladesh declined most.
On the other hand, share prices of Grameenphone surged by 2 per cent on the week as Bangladesh Telecommunication Regulatory Commission on March 19 withdrew the four conditions it imposed on leading mobile phone operator as significant market power.
Average share prices of telecommunication and pharmaceutical sectors advanced by 2.3 per cent and 0.4 per cent respectively.
One year lock-in of 3.28 crore shares of Bashundhara Paper Mills Limited will be freed on April 19.
Out of the 349 traded issues, 223 declined, 105 advanced and 22 remained unchanged.
DS30, the blue-chip index of DSE, shed 1.5 per cent, or 30.66 points, to close at 1,993.00 points.
Shariah index DSES, dropped by 0.19 per cent, or 2.49 points, to finish at 1,289.71 points.
British American Tobacco Bangladesh Company led the turnover chart with its shares worth Tk 98.36 crore changing hands in the week.
BRAC Bank, United Power Generation Company, Dutch-Bangla Bank, Square Pharmaceuticals, Monno Ceramic Industries, Marico Bangladesh, Singer Bangladesh, Grameenphone and Alif Industries were the other turnover leaders.
Eastern Lubricants gained the most in the week with a 11.28-per cent increase in its share prices, while United Insurance Company was the worst loser, shedding 28.08 per cent.
Source: http://www.newagebd.net

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