Tuesday’s rally failed to avert the third consecutive weekly fall

Stock on Thursday plunged for the second consecutive session that neither let the Tuesday's sharp rally to sustain nor helped avoid the weekly fall for third consecutive week.

DSEX, the benchmark index at the Dhaka Stock Exchange, on Tuesday had recovered 110 points after losing 225 points over the previous six sessions.

Analysts believe, declarations of fresh fund injection under market support attempts had a positive impact on market that helped the major indices increase over 2 percent on Tuesday.

But it nosedived again on Wednesday to lose 40 points and came below 4,800 mark again.

The market on Thursday started to frustrate analysts and investors when the indices continued to fall sharply at the beginning of the session.

Though over the last half there was a recovery attempt that helped the market sentiment to be neutralized a bit.

Analyst mainly blamed the government plan to appoint administrators at Grameenphone and Robi behind the early hour's sell-off and thanked bargain hunting efforts that initiated the recovery later.

EBL Securities research team in a recap note to their clients has said, "this week witnessed investors dwindling confidence sliding further amidst the deepening of GP- BRTC regulatory conflict, BDT depreciation against USD and overall instability in capital market."

Finally, the DSEX has lost 10 points or 0.22 percent to close at 4,770 on Thursday. Over the week, the benchmark has lost 40 points, 0.82 percent down from the previous close.

Both the blue-chip index DS30 and Shariah index DSES lost over 1.5 percent over the week.

127 scrips at the DSE gained over the week while 209 lost and price of 20 remained unchanged.

Investor's participation remained low as average daily turnover this week came down to Tk3,13 crore, 0.54 percent down compared to previous week.

The CSE

At the Chittagong Stock Exchange (CSE) broad-based index CSCX has lost 0.94 percent over the week to close at 8,816. The blue-chip index CSE30 managed to limit weekly loss within 0.4 percent while Sharih-compliant shares' index CSI lost 1.6 percent.

At the port city bourse 94 securities advanced while 187 lost and 18 remained unchanged.

Sectoral Scenario

Over the week, investors' activities were mostly concentrated into engineering, pharmaceutical, general insurance which contributed to more than 18, 16 and 12 percent of DSE's weekly trade volume respectively.

General Insurance with 5.2 percent increase in market capital topped the sectoral gainer chart, followed by jute with 2.0 percent gain and banking sector that gained 1.1 percent.

Despite various fundamental concerns from analysts, bank companies started to post profit growth in the third quarter that ended on September 30.

On the other hand, ceramic sector as a part of price correction has suffered the biggest weekly fall of 8.4 percent. Cement sector lost over 5 percent of its market capital and telecom sector lost 4.6 percent due to price fall of Grameenphone.