The bearish trend continued at the Dhaka Stock Exchange (DSE) for the two straight weeks that ended Thursday amid street protest by the aggravated investors, as the DGEN dived below 6,000-point-mark.
Market insiders said the investors are suffering from lack of confidence following the ongoing liquidity crunch in the market due to lower participation of investors.
"Price action of the major indices continue to reflect the lack of confidence among the market participants with no perceptible improvement in trade value, as the market continues to feel the pinch of liquidity crunch," said a stock broker.
Meanwhile, the Securities and Exchange Commission (SEC) took a series of initiatives in the week. The securities regulator provided assurance to the merchant banks of allowing them to create new funds in an effort to overcome liquidity crisis.
The SEC also said the central bank decided to give merchant banks more time to adjust their single-borrower exposures in a bid to help the drooping capital market.
Besides, the SEC agreed in principle to fix a minimum limit for sponsors to hold a certain percentage of shares outstanding.
"But these attempts apparently failed to bring confidence among investors, as the market witnessed choppy trading sessions," said a merchant banker.
The week witnessed five trading sessions as usual, and among them two sessions advanced while three sessions lost.
During the week, the DGEN, the DSE's benchmark index, plunged 110.80 points or 1.82 per cent and sank below the 'psychological support level' of 6,000 points to close at 5,966.51.
The broader All Shares Price Index (DSI) shed 96.90 points or 1.90 per cent to close at 4,991.52. The DSE-20 Index, comprising blue-chip shares, also lost 56.06 points or 1.35 per cent to close at 4,088.45.
Total turnover in the week stood at Tk 16.32 billion in value terms, against Tk 15.94 billion in the previous week. Average daily turnover value increased slightly to Tk 3.26 billion, up by 2.42 per cent over Tk 3.18 billion in the previous week.
The market capitalization was Tk 2,899.63 billion on the opening day of the week, and at the end of the week it stood at Tk 2,853.49 billion, declining 1.59 per cent.
Out of the 264 issues traded, only 39 advanced and 221 declined, while four remained unchanged during the week.
Market operators said the investors were very indecisive, as most of the proposals taken recently to spur the market are yet to be implemented.
'Wait and see' policy of the investors, who have lost their confidence, extremely slowed down the market activities, said a stock broker.
All the sectors ended in red zone in the week. Among the major sectors, banks lost 1.90 per cent, NBFIs 2.58 per cent, general insurance 2.31 per cent and life insurance lost 2.01 per cent.
Other sectors - telecommunications, pharmaceuticals, fuel and power and cement - also declined by 3.13 per cent, 0.22 per cent, 1.29 per cent and 4.31 per cent respectively.
On the other hand, mutual funds and jute sector were only gainers and gained 0.72 per cent and 2.40 per cent respectively.
Lafarge Surma Cement topped the week's turnover chart with shares worth Tk 784.70 million changing hands. The other turnover leaders were CMC Kamal, Beximco Ltd, Titas Gas, GP, Meghna Petroleum, Malek Spinning, City Bank, Jamuna Oil and MI Cement.
Grameen Mutual Fund One was the top gainer, posting a rise of 13.44 per cent, as the fund received clearance from the regulator on its proposed stock and cash dividends.
It was followed by MBL First Mutual Fund, Pharma Aids, Grameen One: Scheme Two, BD Autocars, Jute Spinners, AIMS First Mutual Fund, Beximco Pharma, Libra Infusion and AIBL First Islamic Mutual Fund.
The week's top losers included Monno Ceramics, Monno Jutex, Keya Cosmetics, Monno Stafflers, Hakkani Pulp and Paper, Saiham Textile, International Leasing, Samata Leather, Reliance One Mutual Fund and Legacy Footwear.
Two companies - First Bangladesh Shilpa Rin Sangstha Mutual Fund and Hakkani Pulp and Paper - made corporate declaration in the week.
First Bangladesh Shilpa Rin Sangstha Mutual Fund recommended 125 per cent cash dividend, and Hakkani Pulp recommended five per cent cash dividend.
Meanwhile, a section of aggravated investors took to the street in front of the DSE throughout the week. They staged demonstration and formed human chain, protesting continuous fall of share prices. They also brought out processions, blockading the main road in front of the DSE.
The agitated investors also demanded resignation of Finance Minister A M A Muhith, Bangladesh Bank Governor Dr Atiur Rahman and DSE President Shakil Rizvi, for their 'failure' to take effective measures to stabilise the market.
The demonstrators also sought immediate intervention of Prime Minister Sheikh Hasina to restore normalcy in the market.
The investors also distributed leaflets containing their six-point charter of demands including bringing back stability in the market, resignation of the finance minister and the central bank governor, forcing institutional and big investors to re-invest in the market, giving compensation to small investors, stopping frequent policy change, and withdrawal of cases against investors.
However, no untoward incidents occurred, as additional law-enforcers were deployed at the DSE.
On Sunday, the market plummeted 48.16 points or 1.16 per cent, triggering demonstration by aggrieved investors in front of the DSE main building.
The investors, under the banner of Bangladesh Share Market Investors' Oikkyo Parishad, staged demonstration there protesting ceaseless fall of share prices.
Amid lower participation of investors, the day's turnover value stood at Tk 2.83 billion against Tk 2.41 billion on Thursday.
Meanwhile, a meeting was held with top 30 brokers with the DSE board of directors to ensure institutional investors' support and greater participation. However, it apparently failed to improve the small investors' hurt sentiment.
On Monday, the angry investors took to the streets in front of the DSE once again, halting vehicular movements in Motijheel area for three hours, as the DGEN lose 97.11 points or 1.61 per cent and came down below 6,000 points.
On Tuesday, the market rose 134.32 points or 2.26 per cent and the benchmark index closed at 6,055.17, following the news of the Bangladesh Bank's (BB) extending deadline for adjusting single-borrower exposure limit for merchant banks.
On Wednesday, the market fell sharply again, a day after it closed higher, as the investors went for aggressive sell-off at late hour, and the DGEN plunged 94.43 points or 1.55 per cent to dive below the 6,000-point-mark again.
On Thursday, the market ended almost flat with a rise of 5.77 points amid high volatility throughout the session with lower turnover, as the investors' confidence remained very low.
Market insiders said the investors are suffering from lack of confidence following the ongoing liquidity crunch in the market due to lower participation of investors.
"Price action of the major indices continue to reflect the lack of confidence among the market participants with no perceptible improvement in trade value, as the market continues to feel the pinch of liquidity crunch," said a stock broker.
Meanwhile, the Securities and Exchange Commission (SEC) took a series of initiatives in the week. The securities regulator provided assurance to the merchant banks of allowing them to create new funds in an effort to overcome liquidity crisis.
The SEC also said the central bank decided to give merchant banks more time to adjust their single-borrower exposures in a bid to help the drooping capital market.
Besides, the SEC agreed in principle to fix a minimum limit for sponsors to hold a certain percentage of shares outstanding.
"But these attempts apparently failed to bring confidence among investors, as the market witnessed choppy trading sessions," said a merchant banker.
The week witnessed five trading sessions as usual, and among them two sessions advanced while three sessions lost.
During the week, the DGEN, the DSE's benchmark index, plunged 110.80 points or 1.82 per cent and sank below the 'psychological support level' of 6,000 points to close at 5,966.51.
The broader All Shares Price Index (DSI) shed 96.90 points or 1.90 per cent to close at 4,991.52. The DSE-20 Index, comprising blue-chip shares, also lost 56.06 points or 1.35 per cent to close at 4,088.45.
Total turnover in the week stood at Tk 16.32 billion in value terms, against Tk 15.94 billion in the previous week. Average daily turnover value increased slightly to Tk 3.26 billion, up by 2.42 per cent over Tk 3.18 billion in the previous week.
The market capitalization was Tk 2,899.63 billion on the opening day of the week, and at the end of the week it stood at Tk 2,853.49 billion, declining 1.59 per cent.
Out of the 264 issues traded, only 39 advanced and 221 declined, while four remained unchanged during the week.
Market operators said the investors were very indecisive, as most of the proposals taken recently to spur the market are yet to be implemented.
'Wait and see' policy of the investors, who have lost their confidence, extremely slowed down the market activities, said a stock broker.
All the sectors ended in red zone in the week. Among the major sectors, banks lost 1.90 per cent, NBFIs 2.58 per cent, general insurance 2.31 per cent and life insurance lost 2.01 per cent.
Other sectors - telecommunications, pharmaceuticals, fuel and power and cement - also declined by 3.13 per cent, 0.22 per cent, 1.29 per cent and 4.31 per cent respectively.
On the other hand, mutual funds and jute sector were only gainers and gained 0.72 per cent and 2.40 per cent respectively.
Lafarge Surma Cement topped the week's turnover chart with shares worth Tk 784.70 million changing hands. The other turnover leaders were CMC Kamal, Beximco Ltd, Titas Gas, GP, Meghna Petroleum, Malek Spinning, City Bank, Jamuna Oil and MI Cement.
Grameen Mutual Fund One was the top gainer, posting a rise of 13.44 per cent, as the fund received clearance from the regulator on its proposed stock and cash dividends.
It was followed by MBL First Mutual Fund, Pharma Aids, Grameen One: Scheme Two, BD Autocars, Jute Spinners, AIMS First Mutual Fund, Beximco Pharma, Libra Infusion and AIBL First Islamic Mutual Fund.
The week's top losers included Monno Ceramics, Monno Jutex, Keya Cosmetics, Monno Stafflers, Hakkani Pulp and Paper, Saiham Textile, International Leasing, Samata Leather, Reliance One Mutual Fund and Legacy Footwear.
Two companies - First Bangladesh Shilpa Rin Sangstha Mutual Fund and Hakkani Pulp and Paper - made corporate declaration in the week.
First Bangladesh Shilpa Rin Sangstha Mutual Fund recommended 125 per cent cash dividend, and Hakkani Pulp recommended five per cent cash dividend.
Meanwhile, a section of aggravated investors took to the street in front of the DSE throughout the week. They staged demonstration and formed human chain, protesting continuous fall of share prices. They also brought out processions, blockading the main road in front of the DSE.
The agitated investors also demanded resignation of Finance Minister A M A Muhith, Bangladesh Bank Governor Dr Atiur Rahman and DSE President Shakil Rizvi, for their 'failure' to take effective measures to stabilise the market.
The demonstrators also sought immediate intervention of Prime Minister Sheikh Hasina to restore normalcy in the market.
The investors also distributed leaflets containing their six-point charter of demands including bringing back stability in the market, resignation of the finance minister and the central bank governor, forcing institutional and big investors to re-invest in the market, giving compensation to small investors, stopping frequent policy change, and withdrawal of cases against investors.
However, no untoward incidents occurred, as additional law-enforcers were deployed at the DSE.
On Sunday, the market plummeted 48.16 points or 1.16 per cent, triggering demonstration by aggrieved investors in front of the DSE main building.
The investors, under the banner of Bangladesh Share Market Investors' Oikkyo Parishad, staged demonstration there protesting ceaseless fall of share prices.
Amid lower participation of investors, the day's turnover value stood at Tk 2.83 billion against Tk 2.41 billion on Thursday.
Meanwhile, a meeting was held with top 30 brokers with the DSE board of directors to ensure institutional investors' support and greater participation. However, it apparently failed to improve the small investors' hurt sentiment.
On Monday, the angry investors took to the streets in front of the DSE once again, halting vehicular movements in Motijheel area for three hours, as the DGEN lose 97.11 points or 1.61 per cent and came down below 6,000 points.
On Tuesday, the market rose 134.32 points or 2.26 per cent and the benchmark index closed at 6,055.17, following the news of the Bangladesh Bank's (BB) extending deadline for adjusting single-borrower exposure limit for merchant banks.
On Wednesday, the market fell sharply again, a day after it closed higher, as the investors went for aggressive sell-off at late hour, and the DGEN plunged 94.43 points or 1.55 per cent to dive below the 6,000-point-mark again.
On Thursday, the market ended almost flat with a rise of 5.77 points amid high volatility throughout the session with lower turnover, as the investors' confidence remained very low.
Source: FE
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