The stock market returned to the red last week after gaining marginally in the previous two weeks as investors followed 'wait-and-see' approach, keeping in line with gloomy political and economic outlook.
The presence of investors was also thin on the trading floor throughout the week because of prolonged blockade enforced by BNP-led 18-party alliance. However many investors executed trade over phone.
The week witnessed four trading sessions as market was remained closed Monday on the occasion of Victory Day. The market fell first three sessions while last one managed to close positive amid reduced activities caused by absence of positive expectations in investors' mindset.
Week-on-week, the prime index of Dhaka Stock Exchange - DSEX went down by 54.95 points or 1.28 per cent to close the week at 4,244.64 points.
The DS30 index, including blue chip stocks also went down by 23.28 points or 1.56 per cent in the week and closed at 1,467.07 points.
The Chittagong Stock Exchange (CSE) also ended lower last week, with its Selective Categories Index - CSCX-lost 95.21 points or 1.12 per cent to close the week at 8,340.92 points.
The market saw lower investor participation in the week. The total turnover stood at Tk 20.49 billion against Tk 31.99 billion in the previous week as this week witnessed one less trading session compared to previous one.
Consequently, the daily turnover averaged Tk 5.15 billion, registering 20 per cent lower compared to the previous week's average of Tk 6.40 billion.
"Investors are continuing their 'wait-and-see' policy and waiting for a clear direction. Gloomy political outlook has been a major setback for the market in recent days," said a stock broker.
Gradually, market seems to change its mood from enthusiasm to cautiousness, said LankaBangla Securities, a leading stock broker, in its weekly market analysis.
"After a huge rally in November, investors seem to have gone to a sideline to access to the scenario. They feel if economic scenario gets into trouble due to prolonged political clashes, market valuation may start looking expensive," said the stock broker.
On the other hand, year-end profit booking is also putting pressure on the market, said the stock broker.
"Market has factored recent violence-ridden political confrontation and resultant halt in economic activities throughout the week," said the stock broker.
Market's next strong support level is around 4,150 points. 4,200 points level can also work as a psychological support level.
"Keeping in line with gloomy political and economic outlook, the equity market passed a depressed week, as inventors' lacked any apparent motivation to commit funds for a long time," said IDLC Investments, in its weekly market analysis.
Irrespective of Cap classes, most of the stocks suffered last week, especially Mid Cap and Large Cap stocks, said the merchant bank.
Market participation was highly concentrated to a few scrips throughout the week. First session also observed trade resume of CVO Petrochemicals Refinery after two and a half months suspension.
The week was depressing for almost all the major sectors. Textile only stood positive in this down turn with 0.32 per cent gain. Alongside, excessive trading in textile stocks was observed this week, too, driving the sector capturing 27 per cent of the week's total trading, the merchant bank added.
All the major sectors also ended in red this week. Banks were the the biggest losers with 1.54 per cent loss. It was followed by fuel & power 1.37 per cent and telecommunications 1.19 per cent. NBFIs and pharmaceuticals lost 0.80 per cent and 0.39 per cent respectively.
The losers took a strong lead over the gainers as out of 296 issues traded during the week, 190 declined, 87 advanced and 19 remained unchanged on DSE floor.
The market capitalisation of the DSE went down slightly by 0.95 per cent as it was Tk 2,660.35 billion at the opening day of the week and it stood at Tk 2,635.07 billion in closing day of the week.
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