Stocks slipped on both the bourses this holiday-shortened week dogged by worries about what lies in the days ahead as recent anti-quota protests turned into deadly violence, leading to imposition of curfew, Internet blackout and an unscheduled three-day holiday.
Investor sentiment dipped amid such a situation, which was evident on Wednesday, the first trading day of the week after the holiday. There was thin presence of investors as Internet was not fully restored at that time.
Although all brokers were able to execute trades without any trouble, the first session of the week saw a sharp decline due to shorter trading time and limited Internet access for the investors. However, the next trading session pared most of the losses as the situation started returning to normal.
DESX, the benchmark index of the Dhaka Stock Exchange (DSE), finally slid almost 33 points or 0.60 per cent to settle at 5,414 on Thursday. The DSEX lost a total of 93 points in the past two straight weeks.
The investors were reluctant to inject fresh funds in stocks, worrying about economic setbacks amid curfew imposed following street violence over anti-quota protests, market analysts said.
The stock market witnessed lackluster trading since most investors remained reluctant to actively participate in the market, being apprehensive of the unrest and curfew that affected investor sentiment, said a leading broker.
"The recent unrest and subsequent ongoing nationwide curfew might have hit investor sentiment," said Md Sajedul Islam, managing director of Shyamol Equity Management.
Mr Islam, however, expected the market to rebound in the coming week as the wheels of the economy starts rolling and normality is expected to return soon.
The blue-chip DS30 index, a group of 30 prominent companies, lost more than 20 points to close at 1,933 while the DSES index, which represents Shariah-based companies, dropped 8 points to 1,183.
Blue-chip stocks, which are seen as relatively safer investments with a proven track record of success and a stable growth even in adverse business environments, saw sell-offs by panicked investors.
Square Pharmaceuticals, which is considered one of the best performing blue-chip stocks, with an excellent business reputation, saw 1.1 per cent correction, contributing more than 6-point fall of the index alone.
BAT Bangladesh, the fourth largest stock in terms of market capitalisation, also suffered a 2-point index erosion.
Although the market showed a recovery sign in the last trading day of the week, the overall market sentiment still remains subdued as cautious investors still shy away from taking positions in equities amidst uncertainties regarding the market's outlook.
Amid the ongoing uncertainties, participation of investors remained low as total turnover came down to Tk 6.6 billion in total as the market saw only two trading sessions.
Subsequently, the daily average turnover dropped to Tk 3.3 billion this week with turnover hitting 18-month low on Wednesday.
The pharmaceutical sector kept its dominance in the turnover chart, accounting for 20 per cent of the weekly turnover, followed by food with 12 per cent and banking with 11 per cent.
All the large-cap sectors posted negative performance. Engineering posted a loss of 1.64 per cent, followed by general insurance with 1.6 per cent, non-bank financial institution 1.45 per cent, power 0.91 per cent, food 0.36 per cent and banking 0.25 per cent.
Square Pharma became the most-traded stocks with shares worth Tk 380 million changing hands, followed by Orion Infusion, Lovello, Agni Systems and Sea Pearl Beach Resorts.
Techno Drugs was the top gainer, rising 20.9 per cent while Khan Brothers PP Woven Bag Industries was the worst loser, shedding 5.8 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with its All Share Price Index (CASPI) losing 151 points to 15,415 and the Selective Categories Index (CSCX) shedding 86 points to 9,285.
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