Stocks ended in the red this week, snapping a four-week rally, as the ongoing anti-quota protests took a bloody turn across the country, denting the investor confidence seriously.
Investor sentiment took a heavy blow amid the prevailing unrest on the streets centering the student movement, jeopardising the market's recovery, analysts said.
This week, the market endured losses in three trading days, out of four. There was no trading on Wednesday as it was a public holiday on the occasion of Holy Ashura.
The DSEX, the key index of the Dhaka Stock Exchange (DSE), settled the week more than 60 points or 1.1 per cent lower at 5,446, after gaining almost 410 points in the past four straight weeks.
Stocks failed to hold onto the revival spirit as investors remained apprehensive of the uncertainties regarding the monetary policy statement for the first half of the current financial year, according to an analysis by EBL Securities.
Moreover, the prevailing unrest affected investors' sentiment badly, inducing the risk-averse investors to reduce their exposure and sell-offs, said the stockbroker.
The uncertainties stemming from the student movement has impacted the stock market, said Saiful Islam, president of the DSE Brokers Association of Bangladesh.
Price erosion of several large-cap stocks such as Power Grid, Beximco Pharma, beacon Pharma, Khan Brothers PP Woven Bag Industries and LafaregHolcim largely contributed to the index fall.
These five stocks accounted for almost half of the weekly index decline, said EBL Securities.
The DSES index, which represents Shariah-based companies, also lost more than 16 point to close at 1,191. However, the blue-chip index DS30, a group of 30 prominent companies, managed to rise almost 11 points to 1,953.
The participation of investors was thin as many investors failed to reach trading floor due to the "complete shutdown" enforced by anti-quota protesters on the last trading day.
Total turnover, which shows the combined value of shares traded, dropped to 22.20 billion as against Tk 44.48 billion in the week before, as this week saw four trading days instead of regular five days.
Subsequently, the daily average turnover dropped more than 37 per cent to Tk 5.55 billion from Tk 8.89 billion in the previous week.
The pharmaceutical sector kept its dominance on the weekly turnover chart, grabbing more than 19 per cent of the total turnover, followed by food (12 per cent) and engineering (10 per cent).
All sectors saw price erosion expect telecom, banking and pharmaceuticals. Travel & leisure saw the highest correction of 6.3 per cent, followed by mutual fund, service & real estate, power and textile.
A majority of the stocks saw price erosion, as out of the 393 issues traded, 304 declined, 76 advanced and 13 remained unchanged on the DSE trading floor.
Orion Infusion became the most-traded stocks with shares worth Tk 1.07 billion changing hands, closely followed by Sea Pearl Beach Resorts, Lovello Ice-Cream, Beach Hatchery and Salvo Chemicals.
Far Chemicals was the top weekly gainer, climbing 19.5 per cent while Khan Brothers PP Woven Bag Industries was the worst loser, shedding 11.3 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with its All Share Price Index (CASPI) losing 190 points to 15,567 and the Selective Categories Index (CSCX) shedding 114 points to 9,371.
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