TBT DESK: The Dhaka stock market had an unfavourable week, with all indices consistently declining and the majority of company shares following a downward trend.
A review of the Dhaka Stock Exchange's (DSE) weekly trading reveals that, over five working days, the main index DSEX fell by 23 points. Starting at 5,225 points, the index ended the week at 5,201 points.
Among the other two indices, the Shariah-based DSES dropped by 13 points and the blue-chip company index, DS-30, saw a decrease of 7 points. The situation was particularly dire for small and medium-sized companies. The SME index of DSE fell by 16 points, with the sector losing 1.63% of its index over the week.
Throughout the week, most company shares showed a downward trend. While 149 companies saw price increases, 207 companies saw declines in their share prices.
The prices of 38 companies remained unchanged, and 18 companies did not participate in the trading.
From the start of the week, as the prices of most shares fell, a rush of share selling ensued among investors. This led to increased trading volume, but it did not result in a rise in the overall share prices.
The average daily turnover on DSE during the five trading days was Tk 478 crore, which was nearly 22% higher than the previous week. Despite the increased trading volume, the total market capitalisation decreased.
According to data from brokerage houses, many investors have left the market, causing investor confidence to plummet.
As per the DSE's weekly report, the market capitalisation decreased by USD 333 million over the week. Throughout the week, sectors such as banking, IT, life insurance, textiles, general insurance, tannery, telecom, and jute saw a significant decrease in returns.
On the other hand, mutual funds, ceramics, real estate, the paper industry, financial institutions, corporate bonds, engineering, energy, and pharmaceuticals witnessed good returns. Among these, mutual funds showed the highest return of 5.14%.
The most traded stock of the week was Shinepukur Ceramics, with a total transaction of Tk 16.19 crore over the five working days. Square Pharmaceuticals PLC was second, with a total of Tk 14.5 crore in transactions for the week.
In the block market, the highest volume of shares was sold from Marico. Express Insurance Limited, Bank Asia, Beach Hatchery, and Khan Brothers followed in terms of highest sales.
In the list of companies that saw the highest price increase over the week, Progressive Life Insurance Limited topped the list, with a 30% increase in its share price. The company's shares, which started at Tk 47, ended the week at Tk 62.
Conversely, the worst-performing company in terms of price drop was Alif Industries Limited, whose share price decreased by 13.57%. Starting at Tk 65, the share price fell to Tk 56 by the end of the week.
In a bid to improve the dire state of the stock market, the government formed a four-member committee on Monday (17 March) for the development of the market.
The committee's purpose, as stated, is to further strengthen the Bangladesh Securities and Exchange Commission (BSEC) and, ultimately, to work on the overall development of the country's stock market.
The first meeting of this committee was held on the last working day of the week, chaired by the Special Assistant to the Chief Adviser, Anisulzaman Chowdhury.
Market participants are saying that both the task force and the committee must take effective measures, as mere meetings will not solve the ongoing problems in the market.
On the other hand, the downtrend of the index continued at the Chittagong Stock Exchange (CSE). The overall index at CSE fell by 17 points. Although trading began at 14,576 points, by the end of the week, the index stood at 14,559 points.
Throughout the week, 302 companies participated in the CSE's trading, with the share prices of 154 companies rising, 124 companies' prices falling, and 24 companies maintaining unchanged prices.
During the five trading days, the highest trading volume was recorded for shares of United Commercial Bank. Other companies among the top traded included Uttara Bank, Fine Foods, Robi, Fu-Wan Ceramics, and Shinepukur Ceramics.
The top performer in terms of price increase at CSE was Paramount Insurance Company, with the share price increasing by Tk 10 within a week.
Other companies in strong positions include Shinepukur Ceramics, DBH First Mutual, Semi Lecture Equity Management, and S Alam Cold Rolled Steels.
On the other hand, the highest price decrease was seen in Suhrid Industries Limited, with a fall of Tk 15 in its share price within the week. Like the DSE, a sharp decline was also observed in Alif Industries at CSE, with its share price falling by Tk 14 during the five trading days.