Stocks plunge amid panic sales last week
KEY MARKET INDICATORS OVER THE WEEK
- DSEX fell 3.4% to 6,852 points
- DSE market cap fell by Tk15,000cr
- DSE turnover fell by 9.82% to Tk1,261cr
- Caspi dropped 665 points to 20,058
Indices of both the bourses witnessed a major downturn last week riding on panic sell-offs by investors, driven by the central bank's recent moves.
Recently, the Bangladesh Bank fined the Sonali Bank, Exim Bank, Premier Bank, NRB Commercial Bank, NRB Bank, Southeast Bank and others for breaching the rules of investing in the share market.
Besides, the money market regulator had issued a letter to all banks for submitting the report of the capital market investment daily. It also sought information regarding the investment and liabilities of the asset management companies, who operate mutual funds, without consulting with the Bangladesh Securities and Exchange Commission (BSEC). These moves have shaken the confidence of the investors, said an analyst of a leading brokerage firm.
The key index, DSEX, of the Dhaka Stock Exchange (DSE) lost 3.4% over the week to close at 6,852 points. During the period, the market cap fell by Tk15,000 crore at the DSE.
The port city bourse Chittagong Stock Exchange's (CSE) benchmark index, Caspi, also dropped 665 points to close at 20,058.
EBL Securities said in its weekly market review, investors have engaged in panic-driven sell-offs throughout the week as the liquidity scenarios in the money market are tightening.
Also, the ongoing rise in the inflation rate is expected to adversely impact macroeconomic indicators, and initiatives to inject fresh funds in the market through institutional investors failed to dissuade investors from liquidating their holdings.
A section of investors took the wait and see approach as the average turnover declined by 9.82% to stand at Tk1,261 crore at the DSE.
Investors were mostly active in the banking stocks as the sector contributed 38.7% of total turnover at the DSE, which was followed by textile and miscellaneous sectors.
All sectors except travel witnessed negative performance last week, out of which life insurance, tannery, and cement witnessed the highest corrections.
Besides, the newly listed company Acme Pesticides topped in the gainer chart, where its price increased by 45% in the last week, which was followed by Sena Kalyan Insurance, One Bank, and Shurwid Industries.
On the other hand, LR Global Bangladesh Mutual Fund was the worst loser in the top losers' list last week.