Stocks fell for the second straight week that ended Thursday with turnover remained sluggish as most of the investors were reluctant to make fresh investments due to lack of clear direction.
Analysts said the investors seem to be worried over possible impact of higher burden on the industrial segment due to fresh hike in gas and electricity tariff while recent disposal of stock-scam cases accelerated the nervousness amongst the investors.
On the other hand, many investors withdrew fund and diverted to newly listed Aman Feed, which made debut Tuesday. It created hype among the investors, registering an increase of 173 per cent to close at Tk 98.2 on debut day. It also dominated the top turnover list with Tk 822.67 million.
The week witnessed five trading sessions as usual. Of them, first three sessions witnessed downward trend while last two saw marginal gain.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), dipped below the 4,800-mark further and finished the week at 4,765.72, shedding 47.10 points or 0.98 per cent.
The two other indices also ended lower. The DS30 index, comprising blue chips, lost 11.71 points or 0.96 per cent to settle at 1,823.17. The DSE Shariah Index plunged 9.60 points or 0.81 per cent to end the week at 1,177.11.
The port city bourse Chittagong Stock Exchange (CSE) also tumbled with its Selective Categories Index - CSCX - lost 80.37 points or 0.89 per cent to close the week at 8,890.24.
The total turnover tumbled further and amounted to Tk 19.70 billion against Tk 21.76 billion in the week before.
The daily turnover for the week averaged Tk 3.94 billion, registering a decline of 9.49 per cent over the previous week's averaged Tk 4.35 billion.
Pharma, power and miscellaneous sectors grabbed the investors' attention most, accounting for 15 per cent, 14 per cent and 14 per cent receptivity of the week's total turnover.
"Investors remained cautious and adopted 'wait-and-see' stance as no clear indication of forthcoming market outlook was apparent," said International Leasing Securities, in its weekly analysis.
The maiden verdict and upcoming hearing on the 1996 share market scam cases accelerated the cautiousness among the investors, it said.
LankaBangla Securities, a stockbroker, said, "Investors remained in the sideline as the market had yet to provide any solid direction".
However, some of the heavyweights -- Square Pharma, Renata and Marico registered 2.2 per cent, 2.7 per cent and 3.4 per cent return last week.
The stockbroker noted that the investors are eyeing on imminent Q3 corporate earnings, which is expected to determine next level of direction of the broad market.
"The market exposed bearish mainly due to adverse market activity of the participants," said an analysis of Research and Innovation Lab, a research unit of Royal Capital.
Market volatility spiked by 13.31 per cent last week compared to the previous week. However, the higher variability indicates higher market risks, said the analysis.
IDLC Investments, a merchant bank, said, "Electricity and gas price hike in the last working day of the week were assumed negatively as, high power cost is sure to negatively affect margins of manufacturing companies".
The merchant bank noted that impact of the hike on energy companies mostly unclear until further clarification. In this backdrop, first three sessions of the week observed a brutal sell off of 88.3 points.
Losers outpaced gainers as out of 325 issues traded, 186 declined, 118 advanced and 21 remained unchanged on the DSE floor during the week.
The market capitalisation of the DSE went down further by 0.68 per cent as it was Tk 3,369.99 billion on the opening day of the week and it stood at Tk 3,347.09 billion on closing day of the week.
Four listed companies - Saiham Cotton Mills, Bangladesh Building Systems, GPH Ispat and Modern Dyeing recommended divided last week.
Saiham Cotton recommended 5 per cent cash and 10 per cent stock, Bangladesh Building Systems 20 per cent stock, GPH Ispat 17 per cent cash and Modern Dyeing recommended 10 per cent cash dividend.
The newly listed Aman Feed dominated the week's top turnover chart with shares worth Tk 1.60 billion changing hands followed by Square Pharma, SPCL, Lafarge Surma Cement and Titas Gas.
AIBL Islamic Mutual Fund was the week's best performer, posting a rise of 29.79 per cent while Southeast Bank First Mutual Fund was the week's worst loser, plunging by 15.38 per cent.
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