Daffodil International University
Faculties and Departments => Business Administration => Business & Entrepreneurship => BBA Discussion Forum => Topic started by: Rozina Akter on July 27, 2013, 01:01:00 PM
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The market experienced a sharp decline with turnover dropping significantly as panic driven selling spree and shattered confidence seemed to dominate the market over the week.
The week featured five trading sessions as usual. Among them, four sessions declined sharply, while one session gained steeply following the regulatory move.
Week-on-week, General Index of Dhaka Stock Exchange (DGEN) came down bellow 4,400 points mark once again and closed at 4,312.20 points, shedding 256.26 points or 5.61 per cent from previous week.
The free float based index, DSEX, went down by 244.42 points or 5.79 per cent to close at 3,979.20. The blue-chip index, DS30, posted a steeper loss as it went down by 120.41 points or 7.53 per cent to close at 1,478.27.
The port city bourse -- Chittagong Stock Exchange (CSE) -- also declined sharply with the Selective Category Index of the CSE losing 493.39 points or 5.91 per cent to close at 7,852.97.
Investors' participation at the DSE precipitated significantly in the week. The total market turnover for the week stood at Tk 23.46 billion against previous week's Tk 42.77 billion.
The average daily turnover for the week was Tk 4.69 billion, going down by 45.14 per cent over the previous week's average of Tk 8.55 billion.
"Twin mania situation of panic driven selling spree and turmoil in confidence seemed to dominate the bourse over the week," commented IDLC Investments in its weekly market analysis.
As sentiment moved ups and down, volatility prevailed in the market over frequent scrip wise movements, eventually both DGEN and DSEX got heavy shed off by 256.26 and 244.42 points respectively, it said.
Besides, the investors remained 'watchful' over the Monetary Policy Statement (MPS) rather than injecting fresh funds, the merchant bank said.
"The whole week belongs to sellers. Four out of five days were red due to constant sell pressure from the investors," stated LankaBangla Securities.
"Due to a big fall on the first day of the week after a similar fall in the end of the last day of the week, panic started to creep in to the nerves of investors," said the stock broker.
The losers took a strong lead over the gainers as out of 295 issues traded during the week at DSE, 235 declined, 52 advanced and eight remained unchanged.
None of the sectors ended in green in the week, apart from Food and Allied and Mutual Funds sectors which gained 4.73 per cent and 0.78 per cent respectively. "News on amendment of mutual funds regulations dragged up market sentiment positively on Wednesday," said a stock broker.
All the major sectors ended in red with fuel and power sector losing the most with 10.12 per cent drop followed by NBFIs and telecommunications which fell 7.85 per cent and 7.60 per cent respectively.
The fall of banks and pharmaceuticals was less steep at 2.02 per cent and 2.72 per cent respectively.
During the week, the investors centralised their participations mostly in fuel and power, telecommunications and pharmaceutical sectors that accounted for 26.44 per cent, 11.48 per cent and 10.38 per cent respectively.
The market capitalisation of the DSE went down sharply by 4.28 per cent as it was Tk 2,611.10 billion at the opening day and at the week-end it stood at Tk 2,499.29 billion.
Meghna Petroleum became the week's top turnover leader with shares worth Tk 1.78 billion changing hands followed by GrameenPhone, Padma Oil, Titas Gas, BSCCL, Jamuna Oil, Square Pharma, Olympic Industries, Unique Hotel and Resorts and United Airways.
Marico Bangladesh was the week's highest gainer posting a rise of 25.69 per cent. It was followed by ICB Sixth Mutual Fund, ICB Third Mutual Fund, ICB Second Mutual Fund, BATBC, ICB Fourth Mutual Fund, Prime Finance First Mutual Fund, IPDC, ICB AMCL Third NRB Mutual Fund and Phoenix Finance First Mutual Fund.
The week's worst losers included Progressive Life Insurance, Renwick Jajneswar, Eastern Cable, BSC, Greeen Delta Insurance, AMCL (Pran), Pharma Aids, Meghna Petroleum, Usmania Glass and CVO Petrochemicals Refinery.
Source: The Financial Express