A file photo shows the Dhaka Stock Exchange building at Nikunja in the capital, Dhaka. Over the past week, shares in Dhaka have fallen for the second week in a row as investors increased their share sales amid concerns over the Bank of Bangladesh’s circular on market exposure limit stock exchange of non-banking financial institutions and the Russian-Ukrainian conflict. — New Age Photo

Over the past week, shares in Dhaka have fallen for the second week in a row as investors increased their share sales amid concerns over the Bank of Bangladesh’s circular on market exposure limit stock exchange of non-banking financial institutions and the Russian-Ukrainian conflict.

DSEX, the main index of the Dhaka Stock Exchange, plunged 2.17%, or 151.92 points, over the past week to close at 6,839.44 points on February 24, the last trading session of the week, after losing 94.6 points the previous week. .

The market fell in four sessions during the five-session week as investors kept selling stocks amid bearish market conditions, market operators said.

The shares have already been in the doldrums for more than a month.

The situation escalated when the central bank issued a circular saying that NBFIs’ investments in shares and other capital market instruments would be considered their capital market investments, market operators said.

Investors feared the directive would further compress NBFI investments in the stock market, they said.

The media also reported that the Bangladesh Securities and Exchange Commission had asked 116 market intermediaries to reset their negative capital of Tk 8,674 crore.

Market operators said investors feared selling pressure in the market if companies made an adjustment.

As investors grappled with the stakes, Russia launched air and ground assaults on Ukraine on Feb. 24, sending the market down 109 points.

Concerns over the attacks on Ukraine have spilled over into global stock markets due to the possible negative impact on the global economy.

EBL Securities, in its weekly market commentary, said: “The week began with pessimistic investors due to continued market volatility and the negative connotation of BB’s recent circular regarding exposure to NBFI to the capital market”. Adding to the peril, in the last trading session, the Russia-Ukraine crisis caused investors to panic as they feared soaring oil prices and rising inflation.

Average stock prices across all sectors fell over the week.

Average stock prices in the general insurance, non-banking financial institutions, banking and pharmaceutical sectors fell 4.6%, 4.4%, 2% and 1.5% respectively.

The losers took a strong lead over the winners, as out of 388 issues traded, 297 fell, 73 advanced and 17 remained unchanged.

Two other indexes also ended sharply lower with the DS30, made up of 30 large-cap companies, down 58 points to end at 2,514.97 points and the DSE Shariah Index, DSES, down 22.83 points to close at 1,475.72 points.

Average daily turnover, a crucial indicator of investor participation, fell by 16.46% to Taka 996.97 crore during the week, from Taka 1,193.42 crore the previous week.

Dragon Sweater and Spinning Limited were the best performers of the week, posting a gain of 22.84%, while Genex Infosys Limited was the worst loser, losing 13.44%.

Bangladesh Export Import Company Limited tops the turnover list with its shares worth Tk 295.67 crore changing hands.

Fortune Shoes, Orion Pharma, Bangladesh Shipping Corporation, National Life Insurance Company, Anwar Galvanizing, British American Tobacco Bangladesh, Dragon Sweater and Spinning, SAIF Powertec and Sonali Paper & Board Mills were other revenue leaders.