Bourses to open week with losses

Stocks ended last week with losses as investors were worried about the possibility of coronavirus adversely affecting the macroeconomic environment of Bangladesh, and hence, the stock market.

DSEX, the key index of the Dhaka Stock Exchange, dropped 96 points or 2.1 percent during the week to close at 4,384.

CASPI, the benchmark index of the Chittagong Stock Exchange, lost 339 points or 2.5 percent over the week to close at 13,404.

The market witnessed three negative sessions and two positive sessions during the week.

On March 1, participation of investors remained low because they continued to liquidate their holdings, anticipating further price decay in the ailing stock market.

However, the market ended positive in the next two sessions, as investors showed interest in safer and profitable securities, considering their lucrative price level.

Additionally, institutional investors played a vital role in the two positive sessions of the week since four banks – Sonali, Rupali, Dhaka and City – declared that they will avail a special fund facility for investing in sector-specific issues, according to one of the daily market reviews of EBL Securities Ltd.

The market failed to hold on to its two-session gains in the following sessions of the week as investors' confidence was shaken by the likelihood of coronavirus affecting the country's stock market.

The epidemic has skidded the world's capital markets into record low since the 2008 financial crisis, and the world's leading indices are losing points. Bangladesh's international trade is also likely to suffer due to the coronavirus epidemic, the review added.

Other ailing macroeconomic factors such as decreasing private sector credit and deposit growth, anticipation of inflation, and increasing public debt from the banking sector have also contributed to the market fall.

Trading remained low during the week, and the average turnover stood at Tk482.2 crore, 22 percent down from the previous week's Tk617.5 crore.

In the weekly average turnover distribution, the pharmaceuticals sector contributed the highest 20.4 percent to turnover, followed by textiles adding 16.9 percent and engineering adding 13.5 percent.

All the sectors posted weekly losses except jute exhibiting 9.4 percent gain, travel and leisure gaining 2 percent and paper and printing inching up 0.3 percent.

Among the large-cap sectors, telecom lost 3.9 percent, financial institutions lost 1.5 percent, pharmaceuticals gave up 1.3 percent and banks slid 1.1 percent in the weekly sector return board.

Monno Ceramic Industries Ltd was the most traded stock of the week with a closing price of Tk114.3 per share. Its weekly turnover was Tk121.2 crore, according to the DSE website.

Intech Ltd topped the weekly gainers' table by gaining 31.9 percent, closing at Tk20.7 per share. International Leasing and Financial Services Ltd, on the other hand, was the week's worst loser by dropping 12.8 percent and closing at Tk3.4 per share.