Political fears weigh on stocks
Stocks declined 3.8 percent last week -- the lowest in two months -- as investors sold off shares amid fears of political instability stemming from the disappearance of BNP Organising Secretary M Ilias Ali.
The DGEN, the yardstick of Dhaka Stock Exchange, went down 204.09 points to finish the week at 5,163.43.
Analysts said the market plunged last week after a six-week rally due to reluctance of investors to make any new investment as the political situation signals a foggy investment outlook ahead.
Earlier, the DGEN gained around 1,022 points or 24 percent in the previous six weeks.
Ongoing political tension and profit-taking accelerated the price correction, LankaBangla Securities said in its weekly market commentary.
Meanwhile, the DSE took some positive steps to stabilise the market, including a proposal to make dividend income up to Tk 25,000 tax-free in the upcoming budget, formation of a 14-member panel to make recommendations on the financial condition of a company willing to go public by analysing financial statements.
The prime bourse also plans to introduce online trading using member's server application software on June 10.
Only one session witnessed a 21-point gain last week while four sessions lost 225 points. Average daily turnover stood at Tk 761 crore, 25.44 percent lower than the previous week.
A total of 7.63 lakh trades were executed with 55.93 crore shares and mutual fund units changed hands on the Dhaka bourse. Of the 275 issues traded, 227 declined, 47 advanced and one remained unchanged.
Most sectors fell last week: non-bank financial institutions 7.65 percent, banks 4.91 percent, fuel and power 1.53 percent and life insurance 9.95 percent.