Dhaka stocks witnessed a marginal correction this week after bouncing back in the previous weak from the steep market fall, as investors stayed cautious due to the ongoing Russia-Ukraine war and escalating inflationary pressure.
Of the five trading days this week, three sessions closed lower and two others edged up amid volatile trading.
Week on week, DSEX, the core index of Dhaka Stock Exchange (DSE), lost 12.72 points or 0.19 per cent to settle at 6,752, after gaining over 97 points in the week before.
Market analysts said investors were hesitant about making fresh investments in stocks amid the rising cost of living and potential adverse impacts on the economy due to the Russia-Ukraine war.
Global price instabilities caused by the ongoing war remained a major concern for the future macroeconomic scenario of Bangladesh, said a merchant banker.
The Russian invasion of Ukraine has escalated inflationary pressure, which discouraged many investors from putting fresh bets on stocks, he added.
Although the Bangladesh Securities and Exchange Commission (BSEC) recently wrote to several banks, asking them to invest in stocks in the existing capacity to support the market and for the development of the capital market, the move failed to lift the market sentiment.
"The investors seem to have turned cautious about making fresh bets in stocks as the price hike of essentials and inflation emerged as headache for the average-income families that might hurt corporate earnings ultimately," according to the International Leasing Securities.
EBL Securities said stocks witnessed a mixed week as investors remained concerned despite regulatory efforts to improve the market liquidity.
Many investors remained worried about the ongoing crisis between Ukraine and Russia and the potential adverse impacts on the country's economy, said a leading broker.
He noted that some of the investors also opted to stay on the sidelines as concerns loomed due to the rising inflation and local currency depreciation against the US dollar.
Two other DSE indices, however, edged higher. The DS30 index, comprising blue chips, gained 8.25 points to finish at 2,466 and the DSE Shariah Index (DSES) advanced 2.50 points to close at 1,456.
The week's total turnover stood at Tk 39.01 billion on the prime bourse, which was Tk 38.86 billion in the week before.
The daily turnover averaged out at Tk 7.80 billion on the country's premier bourse, which was nearly 20 per cent lower than the previous week's average of Tk 9.71 billion.
Market capitalisation of the DSE also dropped 0.47 per cent to Tk 5,382 billion on Thursday, from Tk 5,407 billion in the week before.
Most of the major sectors suffered losses, with the IT sector losing the most (3.90 per cent), followed by financial institutions (2.0 per cent), engineering (0.90 per cent), food (0.80 per cent), telecom (0.80 per cent), banking (0.70 per cent), and power (0.50 per cent).
On the other hand, cement, and pharma sectors gained 2.30 per cent and 0.20 per cent respectively.
Of the 385 issues traded, 264 declined, 105 advanced and 16 issues remained unchanged on the DSE trading floor.
Beximco was the most traded stock with shares worth Tk 4.61 billion changing hands, followed by Fortune Shoes (Tk 1.24 billion), Orion Pharma (Tk 1.15 billion), BDCOM Online (Tk 1.05 billion) and Dragon Sweater (Tk 979 million).
Gemini Sea Food was the week's top gainer, posting a 17.96 per cent gain, while Delta Brac Housing Finance Corporation was the worst loser, shedding 11.26 per cent, following its price adjustment after record date.
However, the Chittagong Stock Exchange (CSE), edged up, with the CSE All Share Price Index (CASPI), gaining 3.38 points to settle at 19,824 while its Selective Categories Index (CSCX) advancing 3.14 points to close the week at 11,893.
Of the issues traded, 235 declined, 103 advanced, and nine remained unchanged on the CSE trading floor.
The port-city bourse traded 59.70 million shares and mutual fund units with turnover value of Tk 1.33 billion.
babulfexpress@gmail.com