Stock market loses Tk 54.29 billion in a week
Graphics: Agamir Somoy
The prime stock market regained some momentum after the commission led by Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan took charge on June 4. However, the positive trend did not last long.
Investors have been incurring losses amid a continuous decline in share prices over the past month. In the outgoing week alone, Tk 54.2977 billion was wiped off investors’ portfolios on the Dhaka Stock Exchange (DSE).
According to DSE data, its market capitalisation stood at Tk 6.984977 trillion at the beginning of last week. At the end of the final trading session of the week, it had fallen to Tk 6.930802 trillion. In other words, market capitalisation declined by Tk 54.2977 billion in just one week, down 0.78 percent from the previous week.
After the commission led by Masud Khan took charge, the DSE’s benchmark index, DSEX, rose from 5,475 points to 5,926 points on July 15. The upward momentum then came to a halt. Although the index fluctuated for some time, the market has remained on a continuous downward trend since August 11. As a result, the DSEX has fallen to 5,515 points.
A total of Tk 27.7124 billion worth of shares and units were traded on the DSE during the outgoing week, compared with Tk 30.4410 billion in the previous week. Thus, turnover fell by Tk 2.7286 billion, or around 9 percent, in a week.
Alongside the indices, share prices of most companies also declined. The DSEX fell by 147 points, or 3 percent, in one week to 5,515 points. The DSE Shariah Index, or DSES, declined by 33 points, or 3 percent, to close the week at 1,105 points.
A total of 386 companies and institutions traded shares and units on the DSE during the outgoing week. Share prices of only 60 companies, or 15.54 percent of the total, increased. In contrast, prices of 310 companies, or 80.31 percent, declined, while prices of 16 companies, or 4.14 percent, remained unchanged.
A similar picture was seen on the country’s other stock market, the Chittagong Stock Exchange (CSE). A total of Tk 1.5367 billion worth of shares and units were traded on the CSE during the outgoing week. Its broad index, CASPI, fell by 306 points, or 2 percent, to 14,867 points.
Shares and units of 307 companies were traded on the CSE during the week. Prices of 58 companies increased, 227 declined and 22 remained unchanged.
As a result, the dominance of declining share prices was evident on both stock exchanges during the outgoing week. The losses suffered by investors were particularly significant on the DSE, where share prices of more than 80 percent of listed companies declined.
