Stocks closed negative last week as investors were doubtful about the recovery of the falling stock prices.
The DSEX, key index of the Dhaka Stock Exchange, fell 0.4 percent during the week. The CASPI, benchmark index of the Chittagong Stock Exchange, dropped 0.3 percent to 13,543 points.
The DSEX posted two positive sessions at the opening of the week but ended with three consecutive negative sessions during the last days of the week.
During the week's first two sessions, investors were optimistic about stocks as they were rebalancing their portfolios based on the earnings declarations of some companies last week.
Moreover, the finance minister's statement on enlisting seven state-run energy firms in the stock market had also made the index close in green.
But this gaining momentum got disrupted, says the Weekly Market Review of EBL Securities Ltd, as investors remained cautious and went on side-line approach after macroeconomic factors such as export earnings and private credit growth fell further.
Most companies posted negative earnings per share. So, the investors assigned more weight to the stocks that recorded positive earnings.
Some investors also booked profit, fearing that the stock prices might fall further, thanks to a plunge in the corporate earnings backed by a decline in exports.
Investors were also worried about the negative effects of the government's decision – to bring 61 state and autonomous agencies' surplus money to the national exchequer – on the stock market. The decision led the market to close in the negative territory on the last day of the week.
In Dhaka Stock Exchange, turnover stood at Tk444 crore on average in each session of the week.
Half of the sectors showed positive movements during the week with ceramics and jutes gaining the highest 3 percent each while cement shedding the highest 4.9 percent in the weekly sector return board.
Among the large-cap sectors, telecom gained 1 percent, and pharmaceuticals gained 0.6 percent, while banks and financial stocks both lost 1.9 percent over the week.
The Lafarge Holcim Bangladesh Ltd was once again the most traded stock of the week, with a closing price of Tk46.6 per share. It showed a weekly loss of 7.4 percent, and its weekly turnover value was Tk156.5 crore, according to the DSE website.
Phoenix Finance 1st Mutual Fund topped the weekly gainers' table, gaining 24 percent, closing at Tk8.3 per share.
United Airways was the week's worst loser, dropping 16 percent and closing at Tk1.6 per share.