Stocks tumble on selling spree

Stocks witnessed yet another bearish week that ended.

Post-dividend price adjustment in some banks' share prices coupled with Bangladesh Bank's latest warning to 20 banks to recover defaulted loans, the bank sector faced further 3.38 per cent correction last week.

The week featured five trading sessions as usual. Of them, four sessions fell sharply by 127.49 points while one session saw 3.29 points gain.

Week-on-week, DSEX went down by 124.20 points or 2.20 per cent to settle the week at 5,521.66 points, which was the lowest level of DSEX in two and a half months since February 9, this year.

DSEX lost about 255 points in the past 11 trading sessions, after reaching highest level at 5777 points since its introduction in January 2013, except 3.29 points gain on Monday last.

The two other indices also finished lower. The DS30 index, comprising blue chips, fell 36.90 points or 1.77 per cent to finish at 2,050.44. The DSE Shariah Index dropped 22.64 points or 1.75 per cent to close at 1,272.24.

The port city bourse, Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index, CSCX, slumping by 225 points or 2.12 per cent to close at 10,368.

The total turnover for the week came down to Tk 34.33 billion against Tk 35.93 billion the week before with block trade contributed 3.7 per cent to the total weekly turnover.

The daily turnover averaged at Tk 6.86 billion, which was 4.46 per cent lower than the previous week's average of Tk 7.18 billion.

The bank sector kept its dominance in turnover chart for the fourth straight week, capturing 22 per cent of the week's total turnover value, followed by textile 17 per cent and financial institutions 13 per cent.

The large-cap sectors showed mostly negative performances. The financial institutions was the biggest loser, slumping by 3.42 per cent, closely followed by banks 3.38 per cent, engineering 3.05 per cent, telecommunication 1.1 per cent and pharmaceuticals 0.63 per cent.

Food and allied and fuel and power managed to closed green with advancing 0.54 per cent and 0.41 per cent respectively.

The total market capitalisation of the DSE also fell 1.26 per cent last week as it was Tk 3,783 billion on the opening day of the week, while it came down to Tk 3,735 billion on closing day of the week.

LankaBangla Finance dominated the week's turnover chart for the third straight week with about 4.30 million shares of Tk 2.36 billion changing hands, followed by Shahjibazar Power Company, City Bank, Ratanpur Steel Re-rolling Mills and Regent Textile Mills.