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Stocks continue to fall for 4th week

Published : 28 May 2022 10:15 PM | Updated : 29 May 2022 01:53 PM

Stocks expanded the losing streak for the fourth straight week even though various market-supportive measures were taken to gain investors' confidence.

The prime DSEX index of the Dhaka Stock Exchange (DSE), declined by 424 points or 6.80 percent during the last four weeks to close at 6,238 on Thursday. 

Market analysts said the key index of DSE lost a total of 556 points in eight consecutive days as of Sunday, the first trading day of the week, hitting its 11-month low.

The regulatory interventions helped to minimise investors’ loss in the last week, otherwise investors could loss further.

Finance Minister AHM Mustafa Kamal asked the authorities concerned to extend the tenure and fund size of the capital market refinance scheme after a meeting with the central bank governor, finance secretary, and financial institutions division secretary on Sunday.

Also, the Bangladesh Securities and Exchange Commission (BSEC) raised the margin-loan ratio to 1:1, meaning investors would get a maximum of Tk 100 in loans against their investment of Tk 100 for any marginable company.

Later, the securities regulator also reduced the lower circuit limit and saved the market from a big fall, expert said.

Despite several market-supportive measures, the investors are yet to get back their confidence as uncertainty persists due to the ongoing Russia-Ukraine war and instability in the global commodity market, they mentioned.

However, the prime DSEX index of Dhaka Stock Exchange (DSE), decreased by 20.27 points or 0.32 percent in the last week to finish at 6,238.

The DS30 index, comprising blue chips, went down by 9.29 points to close at 2,307 while the DSE Shariah Index (DSES) lost 9.33 points to settle at 1,373.

The total turnover also declined to Tk 30.54 billion on the prime bourse in the last week as against Tk 32.35 billion in the week before.

Market capitalisation of the DSE also fell by 0.37 per cent to Tk 5,080.02 billion on Thursday, down from Tk 5,098.72 billion in the week before.

Out of 387 issues traded, 195 declined, 161 advanced and 31 remained unchanged.

On the other hand, the port city bourse, the Chittagong Stock Exchange (CSE) saw a slight decrease in its selective category index (CSCX) losing 98 points in the last week to close at 10,966 points.

The All-Share Price Index (CASPI) of the CSE was also lower by 159 points to close at 18,280 points.

Of the 343 issues traded, 119 advanced, 204 declined and 20 remained unchanged on the CSE trading floor.

The port city's bourse traded 3.79 crore shares and mutual fund units with turnover value of Tk 88.50 crore during the last week.

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