Stocks extended the losing streak for the four straight weeks that ended on Thursday as investors reacted on the regulatory decisions amid ongoing virus-induced lockdown.
The market witnessed a massive fall of 182 points on the first trading day of the week due to lockdown panic. The key index gained 248 points in the next three sessions riding on extended margin loan facilities although trading hours were reduced.
The bourses also cut the trading hours to two hours from existing four and a half hours during lockdown.
However, the index dropped 82 points on the last trading session of the week after the stock market regulator lifted the floor price restriction for 66 companies.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 15.76 points or 0.30 per cent to settle at 5,254. The DSEX lost 314 points in the four consecutive weeks.
Market analysts said several regulatory policy decisions impacted investor confidence amid the ongoing coronavirus pandemic as the investors reacted the regulatory decisions.
The week started on a massive fall amid the government enforced lockdown and deepening worries over the rising coronavirus cases which prompted the stock market regulator to enhance the margin loan facilities.
The Bangladesh Securities and Exchange Commission (BSEC) allowed loans of up to Tk 80 for investors against investment of Tk 100which came into effect from Monday.
Earlier, stockbrokers and merchant bankers were allowed to provide loans of Tk 50 against the same amount.
Subsequently, the key index started to rise from Monday and has since surged by 248 points. However, the index dropped 82 points on the last trading session of the week after the market regulator lifted the floor price for 66 companies on Wednesday.
The securities regulator lifted the floor price restriction for 66 listed companies set a year ago when the market was in free fall caused by the first wave of the Covid-19 pandemic.
The investors' sentiment remained weak due to ongoing lockdown amid rising coronavirus cases while the lifting floor price restriction for selective companies trigger the selling pressure, said a top broker.
The DSE Shariah Index (DSES) also shed 4.88 points to close at 1,197. However, the DSE30 Index, comprising blue chips, advanced 7.09 points to finish at 1,990.
Despite the Covid-19 scare and the ongoing lockdown, market managed to hold on to its current level due to positive regulatory initiatives and the government easing lockdown restriction over the time, commented EBL Securities.
The week's total turnover on the prime bourse stood at Tk 23.24 billion which was Tk 20.28 billion in the week before as last week saw five sessions instead of previous week's four.
The daily turnover averaged out at Tk 4.65 billion, which was 8.34 per cent lower than the previous week's average of Tk 5.07 billion.
Block trade contributed 8.9 per cent to the total weekly turnover, where stocks like Islamic Bank, Provati Insurance, Uttara Bank and Dutch-Bangla Bank dominated the block trade board.
Losers took a strong lead over the gainers, as out of 367 issues traded, 205 declined, 108 advanced and 54 issues remained unchanged on the DSE trading floor.
Beximco - the flagship company of Beximco Group- was the most- traded stock with shares worth about Tk 2.37 billion changing hands, followed by Robi, Asia Pacific Insurance, Beximco Pharma and Provati Insurance.
The general insurance companies saw the highest gain as nine out of top 10 gainers were belonging to insurance sector.
Newly listed Desh General Insurance was the week's top gainer, posting a gain of 39.68 per cent while Mercantile Bank was the worst loser, losing 16.18 per cent.
The market-cap of DSE also rose to Tk 4,592 billion on Thursday, up slightly by 0.12 per cent over the week before.
The Chittagong Stock Exchange (CSE) also edged lower with the CSE All Share Price Index - CASPI -losing 25 points to settle at 15,231 and the Selective Categories Index - CSCX shedding 13 points to close at 9,190.
Of the issues traded, 147 declined, 91 advanced and 47 remained unchanged on the CSE.
The port city's bourse traded 74.20 million shares and mutual fund units with turnover value of Tk 2.97 billion.
A new issue - Index Agro Industries-- made trading debut last week. The newcomer's price closed at Tk 72.40 each on Thursday, gaining 44.8 per cent.
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