Dhaka shares drop last week after two-week increase

An archive photo shows the Dhaka Stock Exchange building in Nikunja in the capital, Dhaka. Dhaka shares fell last week after gaining in the previous two weeks as investors opted for cautious trading ahead of the financial close at the end of December. – Photo New Age

Dhaka shares fell last week after gaining in the previous two weeks as investors opted for cautious trading ahead of the financial close at the end of December.

DSEX, the key index of the Dhaka Stock Exchange, fell 1.67%, or 116.57 points, over the past week to close at 6,868.17 points on December 15, the last trading session of the week after gaining 132.65 points in the previous two weeks.

The market remained closed on December 16 for Victory Day.

The market lost in three sessions over the four-day trading week as investors turned to sell shares amid continued market volatility, traders said.

They said institutional investors remained passive in making investment decisions ahead of the year-end in December.

The media reported that thirty-two banks that formed special funds for stock market investments in accordance with the Bangladesh Bank guidelines had yet to use 56% of their aggregated funds, even 20 months after the introduction of the field. application by the central bank.

The rest of the country’s 60 banks have so far shown no interest in investing in the country’s capital market by setting up special funds.

Market operators said there was no sign of ending a standoff between the Bangladesh Securities and Exchange Commission and the Bangladesh Bank over issues related to the stock market.

On December 9, the central bank decided not to treat perpetual bonds of BSEC-approved banks as additional Tier I capital of banks due to the BSEC’s obligation to provide yields to bondholders. .

The market has been in the doldrums since September 9 mainly due to disputes between BB and BSEC, market operators said.

Of the 380 scripts traded on the DSE over the past week, 297 advanced, 75 declined, and eight remained unchanged.

EBL Securities in its weekly market commentary said: “Ahead of the year-end adjustments, stock market indices on the Dhaka stock exchange ended in the red and participation declined during the week as investors preferred hold cash or relinquish funds from the capital market to invest in fixed income and other alternative investments. ‘

Falling stock prices at BEXIMCO, One Bank, Square Pharmaceuticals and Beximco Pharmaceuticals contributed the most to the week’s decline.

Average prices of stocks in textiles, miscellaneous, non-bank financial institutions and banks fell 3.3 percent, 2.6 percent, 2.3 percent and 2.2 percent respectively.

The DSES Sharia Index fell 0.89%, or 13.16 points, over the past week to close at 1,462.31 points.

DSE’s blue chip DS30 index fell 1.74%, or 45.73 points, to end at 2,586.46 points.

The daily average turnover on the DSE fell to Tk 933.27 crore last week from Tk 1,061.80 crore the previous week.

One bank topped the turnover chart last week with shares valued at Tk 291.62 crore changing hands.

Bangladesh Export Import Company, Fortune Shoes, GSP Finance Company, Genex Infosys, Sonali Paper & Board Mills, SAIF Powertec, Delta Life Insurance, IFIC Bank and Sena Kalyan Insurance Company were the other top revenue leaders for the week.

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