Stocks snap 4-week losing streak
Shares in Dhaka soared last week, ending a four-week losing streak, as some investors went bargain-hunting amid regulatory measures.
The Dhaka Stock Exchange’s key index, DSEX, climbed 3.42%, or 213.55 points, over the past week to close at 6,451.53 points on June 2, the last trading session. of the week after dropping 423 points in the previous four. weeks.
The market rose in all sessions of the five-day week as investors went bargain-hunting under a new restriction on price cuts on all listed companies, traders said of the market.
Bangladesh’s 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%.
In addition, some investors have observed that the share prices of many companies have reached lucrative levels that have prompted them to inject new funds, traders said.
Moreover, the BSEC Chairman during a broadcast on May 26 assured investors that the current stock market issues would be resolved as soon as he discussed with Prime Minister Sheikh Hasina the stock market issues.
Consequently, the market gained 131 points on May 29, the first trading day of last week.
However, many investors remain concerned about the current macroeconomic issues, market operators said.
In addition, the Bangladesh Bank on June 2 withdrew the provision of a fixed rate for dollars and allowed banks to set rates on the basis of supply and demand.
The market has been in the doldrums for five months as investors grapple with a variety of issues including the ongoing Russian-Ukrainian war, rising inflation, a record widening trade deficit, a depreciation of the local currency by against the US dollar and concerns about the country’s external debts.
EBL Securities, in its weekly market commentary, said: “The Dhaka Stock Exchange indices had five consecutive positive sessions this week as regulatory initiatives extended the margin lending facility to 1:1 and revised the lower limit of the circuit breaker at 2% against 5% encouraged investors to increase their participation in the market.
Average share prices across all sectors rose over the week.
Share prices in the general insurance, textiles, non-banking financial institutions, banking and pharmaceuticals sectors rose 9.4%, 6.3%, 5.1%, 2.6% and 2% respectively. .4%.
Of 385 issues traded, 356 advanced, 22 declined and 9 remained unchanged.
The DS30, made up of 30 large-cap companies, rose 48.3 points to end at 2,355.68 points and the DSE Shariah Index, DSES, also added 42.01 points to close at 1,415.72 points.
Average daily turnover, a key indicator of investor participation, rose to Tk 785.22 crore during the week from Tk 610.84 crore the previous week.
The Bangladesh Export Import Company was the most traded company with its shares worth Tk 260 crore changing hands.
Other revenue leaders were IPDC Finance, Orion Pharma, GSP Finance, Bangladesh Shipping Corporation, JMI Hospital Requisite Manufacturing, Genex Infosys, Bangladesh Finance, Beximco Pharmaceuticals and ACI Formulations.
Rahima Food Corporation was the best performer of the week, posting a gain of 32%, while Exim Bank was the worst loser, losing 7.44%.