Stocks drop for 4th week amid economic concerns
Shares in Dhaka fell for the fourth week last week as investors continued to sell shares amid economic concerns, but a BSEC decision imposing a new lower limit on the share price decline has limited selling pressure over the last two days of the week.
The Bangladesh Securities and Exchange Commission issued a guideline on May 25 lowering the price decline limit to 2% from 5% for all listed companies while keeping the upper limit open at 10%.
The Dhaka Stock Exchange’s key index, DSEX, lost 0.32% or 20.27 points over the past week to close at 6,237.98 points on May 26, the last trading session of the stock exchange. week.
The DSEX has lost 423 points over the past four weeks.
The market lost in most sessions of the five-session week as investors remained concerned about the country’s macroeconomic situation, market operators said.
The market has been in the doldrums for about four months as investors grapple with a variety of issues including the ongoing Russian-Ukrainian war, rising inflation, a record widening trade deficit, depreciation of the local currency against the US dollar and concerns about the external market. country’s debts.
Foreign investors rushed to exit the market as the appreciation of the dollar against the local currency would reduce their returns on investments, market operators said.
The BSEC took various initiatives to stop the plunge which all but failed in the end, they said.
EBL Securities, in its weekly market commentary, said stocks plunged as the global economic outlook made investors nervous and insisted on putting selling pressure on the stock market.
“Participation has been generally slow over the past week as investors have yet to regain confidence in the market, although the regulator has attempted to boost investor sentiment by declaring an extended credit facility,” he said. he declared.
Stock prices in the general insurance, engineering, pharmaceuticals and banking sectors fell 3.2%, 0.7%, 0.5% and 0.4% respectively.
Of 385 issues traded, 195 declined, 161 advanced and 31 remained unchanged.
The DS30, made up of 30 large-cap companies, lost 9.29 points to end at 2,307.39 points and the DSE Shariah index, DSES, also lost 9.33 points to close at 1,373.71 points.
Average daily turnover, a key indicator of investor participation, dipped to Tk 610.84 crore during the week from Tk 808.93 crore the previous week.
Bangladesh Export Import Company was the most traded company as its shares worth Tk 230.51 crore changed hands.
Other revenue leaders were IPDC Finance, JMI Hospital Requisite Manufacturing, Shinepukur Ceramics, Bangladesh Shipping Corporation, Southeast Bank, Fortune Shoes, GSP Finance, Delta Life Insurance and ACI Formulations.
SEML Lecture Equity Management Fund was the week’s best performer, posting a gain of 16.85%, while Sonali Paper and Board Mills was the worst loser, losing 24.98%.