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Capital market goes thru bad times again

Published : 06 Nov 2021 10:42 PM | Updated : 07 Nov 2021 02:36 PM

The stock market again experienced low transactions as the Dhaka Stock Exchange lost its market cap (Capitalisation) more than Tk 31,000 crore in a month.

Besides, stocks fell for the fourth straight week as cautious investors continued to sell off shares in major sectors.

Market analysts said the capital market witnessed selling pressure for several weeks as retail investors continued to liquidate their stocks while institutional investors did not display much enthusiasm amid ongoing volatility.

Most of the investors sat on the sidelines and observed the market movement, they added.

Eminent economist and market expert Prof Abu Ahmed told The Bangladesh Post, “The market-cap continued to decline as investors observed and stay on the sidelines the market amid lack of positive triggers.”

“If the market starts to rise, investors will regain their confidence,” he added.

However, market-cap of the DSE declined by Tk 31,343 cr and the total value of the DSE stood at Tk 5,51,558 crore during a period of 30 days.

DESX, the prime index of the Dhaka Stock Exchange (DSE), declined by 449 points at the same time to close at 6906.72 on Thursday.

The DSEX went below 7,000-point mark during the last week due to heavy sell-offs on major-sectors stocks as the investors remained worried amid the high volatility of the index. 

Meanwhile, a good number of listed companies disclosed quarterly earnings and year-end dividends during the several weeks.

On the other hand, the DS30 index, comprising blue chips, fell 140 points to finish at 2601.28 and the DSE Shariah Index (DSES) lost 132 points to close at 1462.18 during a month.

The last week's total turnover stood at Tk 64.30 billion on the DSE against Tk 75.50 billion in a week ago.

Losers took a strong lead over the gainers, as out of 378 issues traded, 270 closed lower, 90 higher and 18 remained unchanged on the DSE trading floor during the last week.

On the other hand, the port city bourse, the Chittagong Stock Exchange (CSE) also saw a rapid fall with its selective category index (CSCX) losing 260 points in the last week to close at 12,132 points.

The All-Share Price Index (CASPI) of the CSE was lower by 431 points to close at 20,197 points.

Of the 340 issues traded, only 87 advanced, 240 declined and 13 remained unchanged on the CSE floor.

The port city's bourse traded 7.07 crore shares and mutual fund units with turnover value of Tk 208 crore during the time.

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