Weekly market review: Stocks extend losses as political tensions grow

Stocks continued their decline for the second consecutive week, as the nationwide blockade enforced by the BNP and other opposition parties in the run-up to the elections keep investors jittery.

The market has remained in a bearish trend for over a year since the stock market regulator imposed floor prices. This, coupled with growing macroeconomic concerns and escalating political tensions, has compounded the market's challenges, according to market operators.

Throughout the week, sellers dominated the market, as the dismal financial performance reported by most listed firms during this earnings season prompted investors to reshuffle their portfolios.

Prime Bank, Kohinoor Chemicals, Monno Agro & General Machinery, Olympic Industries and Premier Cement were among the companies responsible for a significant decline in the benchmark equity index this week. They jointly accounted for more than an 11-point drop in the index.

Of the five trading sessions, three sessions suffered losses while two others managed to edge up as most investors remained on the sidelines amid countrywide three-day blockade.

The DSEX, the benchmark index of the DSE, finally settled the week 7.93 points or 0.13 per cent lower to 6,267.90. The DSEX shed more than 21 points in the two consecutive weeks.

The DS30 Index, which consists of blue-chip companies, also dropped almost 2 points to 2,133 and the DSES index, which represents Shariah-based companies, dropped more than 3 points to 1,359.

The investors preferred to realize their short-term gains amid waning market confidence stemming from escalating macroeconomic concerns and mounting political uncertainties ahead of the national election, said EBL Securities.

The stockbroker said despite dominant selling pressure from the majority of investors, some opportunistic investors showed buying interest in specific issues as a part of their portfolio rebalancing based on latest earnings disclosures.

The participation of investors was thin on the trading floor amid the country-wide blockade in the last three days of the week while some investors executed trade over phone.

The total turnover of the week stood at Tk 21.95 billion, up from Tk 18.35 billion in the previous week.

Accordingly, the average daily turnover stood at Tk 4.39 billion in the outgoing week, which was 4.30 per cent lower than in the previous week's average of Tk 4.59 billion.

Most of the traded stocks remained confined to the floor. Out of 378 issues traded, 229 remained unchanged, 79 witnessed fall and 70 saw price rise on the DSE trading floor.

Most of the sectors saw price erosion with cement witnessing the highest correction of 1.60 per cent, followed by jute, tannery, paper & printing and food sectors.

The food sector dominated the week's turnover chart, accounting for 21 per cent of the week's total turnover, followed by general insurance and pharmaceuticals.

Small-cap stocks dominated the turnover list with Fu-Wang Food becoming the most-traded stocks, with shares worth Tk 1.27 billion changing hands, followed by Emerald Oil Industries, Sea Pearl Beach Resorts, Gemini Sea Food and Orion Infusion.

Samorita Hospital was the week's top gainer, rising 32.3 per cent while Monno Agro & General Machinery was the worst loser, shedding 30 per cent.

The Chittagong Stock Exchange (CSE) also ended marginally lower with its All Share Price Index (CASPI) losing 13 points to settle at 18,573 and the Selective Categories Index (CSCX) shedding 0.84 point to close at 11,109.

The port city's bourse traded 199.75 million shares and mutual fund units with a turnover volume of Tk 6.54 billion.

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