Stocks slipped back into the red last week, after a single-week break, as shaky investors opted for profit booking on quick-gaining stocks.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 78.35 points or 1.57 per cent to settle at 4,916, after gaining 16.54 points in the previous week.
Market analysts said the risk-averse investors dumped stocks of the major sectors, which saw a significant gain in the past two months, to book profits.
A lower GDP growth rate forecast by the World Bank and lower-than-expected corporate declarations of some companies during the week also prompted investors for selling shares, they said.
Bangladesh's GDP growth is projected at 1.60 per cent for the current fiscal year as the country struggles with the devastating impact of the lingering Covid-19 pandemic, the World Bank said in its twice-a-year-regional update on Thursday.
Although the financial indicators are satisfactory considering the difficult situation, investors' response to the lower GDP forecast might have added further woes to the market performance, commented EBL Securities.
The stockbroker noted that sell pressure was prevalent throughout the week due to profit booking sell-offs, as many investors opted to cash out gains from large-cap issues.
Fall in prices of large-cap stocks like BATBC, Brac Bank, BeximcoPharma, Olympic Industries, Square Pharma, Islami Bank and IFIC played a major role behind the correction of the index, commented the International Leasing Securities.
The stockbroker noted that the risk-averse investors opted to liquidate their investment ahead of year-end dividend and quarter-end earnings disclosures, fearing a decline in earnings and dividend due to pandemic.
Many investors are also moving to the primary market as the Bangladesh Securities and Exchange Commission (BSEC) approved a good number of initial public offerings in the past two months.
The week featured five trading days as usual. Of them, three sessions faced correction while two sessions edged up.
The two other indices also faced major correction. The DSE 30 Index comprising blue chips fell 41.34 points to finish at 1,669 and the DSE Shariah Index (DSES) lost 17.82 points to finish at 1,108.
The total turnover, a crucial indicator of the market, stood at Tk 46.05 billion which was Tk 45.55 billion in the week before.
The daily turnover averaged Tk 9.21 billion last week which was Tk 9.11 billion in the previous week, registering an increase of 1.10 per cent.
Major sectors witnessed correction with the food sector witnessed the highest correction of 4.0 per cent, followed by engineering 2.9 per cent, and financial institution 2.6 per cent.
On the other hand, general insurance, textile and mutual fund gained 5.90 per cent, 2.10 per cent and 2.0 per cent respectively.
Losers outnumbered the gainers, as out of 359 issues traded, 216 closed lower, 111 ended higher while 32 issues remained unchanged on the DSE floor.
The market capitalisation of the DSE also declined 0.92 per cent week-on-week to Tk 3,996 billion on Thursday.
BeximcoPharma continued to dominate the weekly turnover chart with 12.35 million shares worth Tk 1.45 billion changing hands, followed by Beximco, Walton Hi-Tech, Continental Insurance and Express Insurance.
The insurance companies continued to dominate the week's gainer chart as top eight, out top 10 gainers, came from insurance sector with Continental Insurance was the week's best performer, posting 41.13 per cent while Nitol Insurance was the week's worst loser, losing 16.02 per cent.
The Chittagong Stock Exchange (CSE) also faced correction with the CSE All Share Price Index - CASPI -plunging 258 points to settle at 14,029 and the Selective Categories Index - CSCX-- losing 152 points to close at 8,423.
Of the issues traded, 180 declined, 107 advanced and 29 remained unchanged on the CSE.
The port city's bourse traded 61.48 million shares and mutual fund units with turnover value of Tk 1.49 billion during the week.
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