Stocks plummeted for a second consecutive week that ended on Thursday, as jittery investors were on a selling spree, particularly in the first three trading sessions of the week.
Although the market ended higher on the last trading day riding on the regulatory measures, it failed to offset the first three days' big losses.
Week on week, the benchmark DSEX index of the Dhaka Stock Exchange (DSE), slid 167 points or 2.31 per cent to settle the week at 7,076. The DSEX eroded more than 215 points in the past two weeks.
Two other indices also ended lower. The DS30 index, comprising blue chips, fell by 19.80 points to finish at 2,699 and the DSE Shariah Index (DSES) plunged by 45.27 points to close at 1,518.
Market capitalisation of the DSE also shed Tk 103 billion or 1.77 per cent during the week and stood at Tk 5,698 billion on Thursday.
The week's total turnover came down to Tk 60.43 billion on the prime bourse as against Tk 90.62 billion in the week before, as the last week saw four trading days instead of usual five days because of a public holiday.
The daily average turnover clocked in at Tk 15.10 billion, down 16.64 per cent from the previous week's average of Tk 18.12 billion.
Investors were mostly active in the banking sector, grabbing about 16 per cent of the week's total turnover, closely followed by pharma sector (14 per cent) and miscellaneous (9.0 per cent).
Market analysts said shaky investors sold off their holdings, but the market ended on a positive note on the last day of the week riding on regulatory measures put in place to salvage the market.
During the week, investors' participation also dropped as most of them adopted a cautious approach and some others opted for profit-booking, they said.
The year-end dividend and quarter-end earnings declarations may have failed to meet the investors' expectations, which prompted them to dump shares, commented International Leasing Securities.
The investors profit-booking sell-offs was remarkable in the major sectors in the first three subsequent sessions, said the stockbroker in its weekly market analysis.
Some institutional investors purchased shares in the final trading day that saw price correction in the past few days, when many investors chose to book profits on major sector issues, said a merchant banker.
However, he expressed the hope that the market may rise again due to recent moves taken by the Bangladesh Securities and Exchange Commission (BSEC).
On Tuesday, the stock market regulator announced that it would allow brokerage firms and merchant banks to raise funds by issuing bonds and then reinvest in the market.
The BSEC has paved the way for reinvestment in the market through its decisions, such as the one regarding its stabilisation fund, said the merchant banker.
With this, liquidity in the market will rise and so, investors stopped selling their shares on Thursday, he pointed out.
About 90 per cent traded issues lost prices during the week, as out of 378 issues traded, 338 closed lower, 31 higher and nine remained unchanged on the DSE trading floor during the week.
Among the major sectors, cement witnessed the highest loss of 7.70 per cent, followed by non-bank financial institutions (5.80 per cent), engineering (5.10 per cent), power (4.20 per cent), pharma (2.70 per cent), food (1.40 per cent), telecoms (1.10 per cent) and banking sector (0.70 per cent).
Miscellaneous sector generated the highest return of 8.10 per cent backed by the sector heavyweight Beximco, which gained 11.75 per cent alone, followed by life insurance (1.80 per cent) and tannery (1.70 per cent).
Beximco -- the flagship company of Beximco Group -- topped the turnover chart with shares worth Tk 4.75 billion changing hands, followed by IFIC Bank (Tk 3.14 billion), Orion Pharma (Tk 3.13 billion), Delta Life Insurance (Tk 3.05 billion) and Fortune Shoes (Tk 2.90 billion).
South Bangla Agriculture & Commerce Bank was the top gainer, posting a 16.23 per cent gain while Al-Haj Textile was the worst loser, shedding 15.52 per cent.
The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) plunging by 423 points to settle at 20,693 and the Selective Categories Index (CSCX) shedding 249 points to close at 12,433.
Of the issues traded, 286 declined, 41 advanced and eight remained unchanged on the CSE trading floor.
The port city's bourse traded 68.56 million shares and mutual fund units with turnover value of Tk 2.28 billion.
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