Stocks back in the red
Stocks returned to the red after two weeks of bullish run, as investors' confidence was rattled following the probe report on the recent stockmarket debacle.
The benchmark index of Dhaka Stock Exchange lost 154 points, or 2.4 percent, to close at 6,386 points on a weekly basis.
As the market was closed on Thursday on the occasion of Pahela Baishakh, the first day of Bangla New Year, the daily average turnover of the week stood at Tk 1,040 crore, down by Tk 12 crore from the previous week.
Professor Mahmood Osman Imam, who teaches finance at Dhaka University, said: “The investors took a wait-and-see policy as they are in uncertainty about the actions of the government against the stockmarket manipulators."
Imam said some investors are also hopeful as the market would gain sharply after the approval of the Bangladesh Fund.
He also said it is important how the market would react to the probe report after it gets published.
BRAC-EPL, a stock broker, in its market analysis said although the findings of the report are scheduled to be made public after further scrutiny, a handful of high profile names have been cited in the media.
This was one of the main reasons behind the sharp decline in the index on Monday and subsequent lower trade volume in the latter half of the week, the broker said.
Meanwhile, most of the heavyweight sectors finished negative in the week. The banking sector lost 4.36 percent, non-bank financial institutions 2.54 percent and general insurance 1.56 percent among the losers.
Among other major sectors, telecommunications shed 2.68 percent, pharmaceuticals 1.69 percent and cement 1.03 percent, while the fuel and power sector gained 0.36 percent, tannery 0.66 percent and life insurance 1.89 percent.
Of the total 263 issues traded on the DSE, 149 declined and 114 advanced.
The total market capitalisation also declined on the week, down by 1.73 percent from the previous week.
Beximco topped the turnover leaders and traded shares worth Tk 164 crore.
The other turnover leaders were Titas Gas, Aftab Automobiles, Bextex, Desco, Bay Leasing and Investment, Fu-Wang Ceramic, Square Pharma, BSRM Steels, and Olympic Industries.
Eastern Insurance was the biggest gainer of the week, posting a 23.52 percent rise, while Mercantile Insurance was the worst loser, slumping by 41.63 percent.
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