Sell-offs continue amid confidence crisis

The stock market extended the losing streak for the second consecutive week as the risk-averse investors continued their sell-offs amid rising political tension.
The investors reduced their market exposure in the outgoing week amid rising interest rates while uncertainties regarding the political situation ahead of the national election made them more cautious, market operators said.
The investors were not confident enough about injecting fresh funds into stocks amid a dismal market outlook, said a leading broker.
He said the investors mostly focused on short-term gains as the prolonged volatility and weakened strength of the market reduced their willingness to take long term investments.
Several large-cap stocks saw some buy pressure initially, but a fear of getting funds stuck on the floor price did not let them continue the momentum, he said.
Of the five trading days this week, three sessions suffered losses while the two posted moderate gains.
DSEX, the prime index of the Dhaka Stock Exchange, finally settled the week 9.65 points lower at 6,329.86. The DSEX lost more than 36 points in the past two straight weeks.
The DS30 Index, which comprises blue-chip companies, shed more than 7 points to 2,152 as some large-cap companies saw price erosion while the DSES index, which represents Shariah-based companies, remained almost flat at 1,373.
Stocks extended its losing streak as cautious investors preferred profit-booking and reducing their market exposure owing to the prevailing concerns regarding the market outlook amid the fear of a resurgence of political movement, said EBL Securities.
The market experienced volatility almost throughout the week, with investors being active on both sides of the trading fence while the risk-averse investors continued their selling spree to safeguard their funds from the ailing market, it said.
The sellers ended up in the dominant position by the end of the week, leading the market to end in negative territory.
Turnover, a crucial market indicator, also dropped to Tk 29.64 billion in total, down from Tk 32.57 billion in the week before.
The average daily turnover stood at Tk 5.68 billion in the outgoing week, a 9 per cent decrease compared to Tk 7.17 billion in the previous week. Investors were mostly active in the general insurance sector, capturing 22 per cent of the week's total turnover, followed by food with 15 per cent and miscellaneous sector 12 per cent.
Most of the traded stocks saw price erosion, as out of 388 issues traded, 96 closed lower, 76 higher and 216 issues remained unchanged during the week on the DSE trading floor.
Small-cap Fu-Wang Food kept its dominance in the weekly turnover chart for the fifth straight week with shares worth Tk 1.41 billion changing hands.
Libra Infusions, another low-cap company, was the week's top gainer, registering an increase of 15.92 per cent while Meghna Insurance was the worst loser, shedding 15 per cent.
The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) shedding 28 points to settle at 18,689 and the Selective Categories Index (CSCX) falling 16 points to close at 11,172.
Of the issues traded, 79 declined, 69 advanced and 112 issues remained unchanged on the CSE.
The port city's bourse traded 11.10 million shares and mutual fund units with a turnover value worth Tk 617 million.

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