Bearish run continues for fifth straight session

FE Team | Published: March 20, 2010 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Dhaka Stock Exchange (DSE) extended its bearish run amid subdued trading for the fifth straight session that ended Thursday as the investors preferred to stay on the sidelines in fear of further downslide in stock prices.
The benchmark DSE General Index (DGEN) shed 91.18 points or 1.66 per cent to close at 5,408.66, its lowest since beginning of February. The broader All Shares Price Index (DSI) lost 71.07 points or 1.58 per cent to 4,437.16 while DSE-20 comprising blue chip gained 23.65 points or 0.80 per cent.
Bearish sentiment strengthened its hold at the prime bourse and went on to multiply losses mainly due to central bank's concern about commercial banks' over exposure to stock market and securities regulator's action over the big individual players, said stockbrokers.
Institutional investors, mainstay of the market, were on a selling mood to adjust their portfolios to a minimum level, mainly bringing down the market in the red zone.
Telecommunication and banking sectors were the top decliners in the week as Grameenphone, the country's telecom giant, fell 7.5 per cent and banking issues 2.5 per cent during the week. The two sectors were followed by mutual funds losing 1.5 per cent.
Non-banking financial institutions (NBFIs), however, finished almost 1.5 per cent higher than the previous week. Insurance companies gained moderately with general insurers rising 0.90 per cent and life insurers 1.90 per cent.
On the opening session of the week Sunday, the market started with negative sign as the benchmark DGEN plunged 2.25 per cent to a six-week low.
On the following day, the market showed slight signs of recovery in the hope of positive move from the Securities and Exchange Commission (SEC) to inject life into the market.
The optimism came soon after demonstrations staged by a group of frustrated investors in some parts of the country demanding to bring an end to the bearish sentiment in the market.
On Tuesday, the market bounced back strongly with, DGEN rising sharply 2.3 per cent as the SEC decided to raise margin loan ratio to 1:1.5 from 1:1, effective from last trading session Thursday.
The SEC's move, however, failed to convince the investors as DGEN was down by more than 52 points Thursday.
The week's average daily turnover decreased marginally by 1.6 per cent to Tk 7.15 billion (715 crore) from that of the previous week, amid shortened trading session to four from five due to public holiday Wednesday marking the birth anniversary of Bangabandu Sheikh Mujibur Rahman.
Beximco Ltd, a flagship company of the industrial conglomerate of the Beximco Group, was the week's top turnover leader with shares worth Tk 2.37 billion traded.