The benchmark index of the Dhaka Stock Exchange (DSE) has lost 125 points as investors reportedly were in profit taking mood and busy portfolio restructuring ahead of the upcoming dividends.
At the end of last week, the DSE key index DSEX stood at 7,243 points. The Shariah index DSEX fell by 1.78% to 1,567 and the blue-chip index dropped 1.74% to 2,719 points.
In the outgoing week, due to sell pressure, share price of 231 companies decreased, while only 124 advanced and remaining 23 were unchanged.
As the market participation declined, the average turnover decreased by 29% and stood at Tk1,812 crore, compared to the previous week.
In the weekly market review, the EBL Securities said, continuous corrections and declining turnovers have compelled investors to continue a wait and watch approach. Investors have also continued portfolio restructuring to take positions in the fundamentally sound stocks based on ongoing earnings and dividends declarations.
On Thursday, the DSE had successfully conducted the first trading of Government Treasury Bonds after 16 years. Professor Dr Shaikh Shamsuddin Ahmed, commissioner of The Bangladesh Securities and Exchange Commission, said, "It's a milestone for our capital market. We nearly solved the settlement problem of bond trading. In the next few months, every beneficiary owner can participate in bond trading."
He also added it will increase the daily turnover of the stock market. Investors can strengthen their portfolio by investing in the bond.
Experts said the stock market was in a correction mood. So, investors should not panic about the recent downfall.
In the last week, investors concentrated mostly on the pharmaceuticals & chemicals sector Tuesday which grabbed 18.4 % of market turnover. Textile, fuel & power, banking and cement issues also dominated in the day's turnover. Top ten traded stocks captured around 40 % of total turnover featured by the premier bourse DSE.
Majority of the sectors observed correction, out of which Tannery (5.2%), Paper (3.7%) and Food & Allied (3.6%) experienced positive performance while Travel (-9.1%), Services & Real Estate (-7.0%) and Ceramic (- 5.7%) witnessed price correction.