Stocks dip for 2nd week amid govt move to stabilise market
Image: Bizbangladesh.net
Dhaka stocks dropped in the past week for the second week but the market was saved from a crash in the last two sessions as the government moved to stabilise the market.
DSEX, the key index of the Dhaka Stock Exchange, shed 47.56 points or 1.13 per cent, to close at 4,149 points on Thursday, the last trading session of the past week, after losing 261.9 points in the week before.
The market lost 582 points in the last seven weeks with just one positive week.
Although the market gained in three sessions in the past fiveday week, it ended in the negative zone due to a sharp decline of 176 points in two sessions.
Panicked investors went for indiscriminate sell-offs on Monday and Tuesday as they found no action from the government and the market regulators to stablise the market despite consistent volatility in the last 11 months.
Gloomy economic indicators and the government’s decision to implement the 9-per cent lending rate from April 1 amplified share sales in the recent days.
After the market hit a 56-month low on Tuesday, the government and the market regulator at last swung into action to instil confidence among the investors.
The investors put a pause on the panic sales on Wednesday after Bangladesh Bank governor Fazle Kabir said on the day before that the central bank would extend whatever support was needed to stabilise the stock market.
The BB on Thursday encouraged five commercial banks to invest in the capital market.
Financial institution division senior secretary Ashadul Islam at a meeting with the Bangladesh Merchant Bankers’ Association on the same day said that the ministry had asked four state-owned banks to invest in the capital market to increase fund flow.
Two members of parliament on Wednesday criticised the government over the stock market plunge that was expected to put pressure on the government to take immediate measures to recoup the market.
Investors’ participation in the market was very poor as many of them remained on the side lines to observe how the market would perform.
The market remained volatile for the last 11 months causing the DSEX to fall by 1,800 points and the DSE market capitalisation to decline by Tk 1 lakh crore, putting the investors on edge.
Share prices of Grameenphone continued to decline as its dispute with the Bangladesh Telecommunication Regulatory Commission intensified after the regulator on January 1 served a show-cause notice on it for taking delivery of huge volumes of network equipment without regulatory approval.
EBL Securities in its weekly market commentary said ‘to arrest the free fall and panic-driven sell-offs, the BSEC on Wednesday had a meeting with the stakeholders of the stock market and the BB has given the directive to the SOBs to inject funds in the market.’
Average share prices of textile, non-bank financial institution, telecommunication and energy sectors declined by 6.1 per cent, 4.7 per cent, 3.5 per cent and 1.9 per cent respectively.
Share prices of pharmaceutical and bank sectors gained by 1.7 per cent and 0.01 per cent respectively.
Out of the total 357 scrips traded last week, the prices of 277 declined, 60 advanced and 21 were unchanged.
The daily average turnover on the DSE plunged to Tk 264.14 crore last week from Tk 315.42 crore in the week before.
Shariah index of the bourse DSES lost 0.59 per cent, or 5.62 points, in the past week and closed at 940.29 points.
DS30, the blue-chip index of the DSE, however, added 0.02 per cent, or 0.22 points, and closed at 1,406.60 points.
LafargeHolcim Bangladesh led the turnover chart with shares worth Tk 86.56 crore traded last week.
The other leaders on the turnover chart were ADN Telecom, Square Pharmaceuticals, Khulna Power Company, BRAC Bank, Beacon Pharmaceuticals, Northern Jute Manufacturing Company, Ring Shine Textiles, Standard Ceramic Industries and Western Marine Shipyard.
The best performer of the past week was Olympic Industries with a 10.91-per cent increase in its share prices while Northern Jute Manufacturing Company fared the worst, losing 28.30 per cent points.
Source: https://www.newagebd.net
Tags :
Previous Story
- Stocks’ plunge halted as investors pause panic sales
- Investors demonstrate as stocks continue to plunge
- DSE MD’s recruitment gamed, allege directors
- Stocks continue bleeding as banks rocked by rate...
- Dhaka stocks end four-week bear run on New...
- Banking stocks battered
- Foreign investment withdrawn from Dhaka stocks for 2nd...
- Dhaka stocks gain for 2nd day on new...