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Stocks remained almost flat in the outgoing week after a four-week rally, as the national budget for fiscal year 2023-24 brought no cheer to investors.
This is the first week after the budget was unveiled in parliament on June 01. Furthermore, this week saw the biggest single-day fall in nearly seven months following panic-driven sell-off triggered by a rumour of capital gain tax on individuals.
The stock market, which was gradually regaining its rhythm, has suddenly seen a drastic fall in the middle of the week largely because of the rumor.
However, the market showed some signs of recovery in the last two days of the week on bargain hunting but failed to pare all the losses.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), finally went down by 2.72 points to settle the week at 6,352.84, after gaining 93 points in the past four weeks.
The DS30 Index, which consists of blue-chip companies, also dropped 8.44 points to 2,193. The DSES index, which represents Shariah-based companies, shed 1.14 points to 1,378.
Though the market started the week with an upbeat note, it could not sustain the uptrend as the rumor spread in the market about the tax imposition on capital gain, market insiders say.
Investors were also cautious about the energy situation alongside the runaway inflation.
Inflation jumped to a decade-high at 9.94 per cent in May, which prompted some investors to book profits in anticipation of a tougher time ahead. The ongoing energy crisis adds to the crisis.
"The market notched some signs of recovery in the last two sessions of the week as a sharp correction in the majority of shares created a bargain hunting opportunity for opportunistic investors," said EBL Securities.
The investors preferred to remain cautious and keep an eye on market momentum following the announcement of the national budget, it added.
The bargain hunters tried to revive the market after the massive fall by taking positions on life insurance and engineering sectors' stocks and liquidating the fund from travel, jute, general insurance and cement sectors, said the stockbroker.
The life insurance sector saw a staggering 12.8 per cent gain with five life insurers dominating the weekly top 10 gainers' list.
Investors mostly focused on the life insurance sector that accounted for 22 per cent of the market turnover, followed by the food and power sectors.
The total turnover stood at Tk 54.45 billion, down from 55.22 billion in the week before.
The average daily turnover dropped 1.40 per cent to Tk 10.89 billion, compared to the previous week's daily average of Tk 11.04 billion.
This week, sellers dominated the DSE trading floor, as out of 391 issues traded, 114 closed lower and 69 higher while 208 issues remained unchanged.
Meghna Life Insurance was the weekly turnover leader, with shares worth Tk 2.38 billion changing hands, followed by Intraco Refueling Station (Tk 2.34 billion), Rupali Life Insurance (Tk 1.59 billion), RD Food (Tk 1.40 billion) and Navana Pharma (Tk 1.16 billion).
Trust Life Insurance was the week's top gainer for the second week straight, soaring 60.4 per cent while National Tea Company was the worst loser, shedding 15.97 per cent.
The Chittagong Stock Exchange (CSE), however, edged up with its All Share Price Index (CASPI) rising 7 points to settle at 18,762 and the Selective Categories Index (CSCX) gaining 2 points to close at 11,221.
The port city's bourse traded 20.81 million shares and mutual fund units with turnover value of Tk 990 million during the week.