Stocks suffered yet another setback in the outgoing week, with the key index of the Dhaka Stock Exchange (DSE) falling to four month low, amid confidence crisis among investors.
The week featured five trading days as usual and four sessions ended sharply lower while one saw marginal rise.
Week-on-week, DSEX, the prime index of DSE, slid 165.56 points or 2.41 per cent to settle the week at 6,702, lowest in more than four months since August 12 this year, when the core index was 6,699.
The key index of the prime bourse shed more than 665 points or 9.02 per cent since reaching its recent peak at 7,367 points on October 10 this year.
Market analysts said the pessimist investors continued their selling binge on major sector stocks as the prolonged bearishness on the market reduced the investors' risk taking appetite.
The tussle between Bangladesh Bank and Bangladesh Securities and Exchange Commission for a long time made the investors reluctant to put fresh funds in stocks, according to a stockbroker.
"The investors were struggling with lack of confidence amid concern over new coronavirous variant Omicron while the tussle between two regulators affected their sentiments," he said.
Most of the investors released their holdings after noticing that the heavyweight stocks witnessed price fall, putting further pressure on the indices, said a merchant banker.
He noted that investors' participation has been reduced to a great extent due to the absence of clear market direction.
Despite the market plunge, stocks of low-cap companies, including insurance, saw an upsurge in prices after the securities regulator directed them to comply with the requisite Tk 300 million in paid-up capital within a specified deadline.
Investors trimmed their positions on large-cap equities since general investors are seeking opportunities in small-cap insurance stocks.
The investors tried to rebalance portfolio by taking positions in the low cap insurance sector stocks as investors continued to chase after insurance stocks, according to EBL Securities.
Insurance stocks dominated the weekly gainers' chart with eight out of top ten gainers belonging to the insurance sector.
The insurance sector also surged 7.80 per cent with 48 insurers closed higher out of 52 listed insurance companies.
During this week, two other DSE indices also ended lower. The DS30 index, comprising blue chips, plunged 74.47 points to finish at 2,511 and the DSE Shariah Index (DSES) dropped 38.66 points to close at 1,423.
The Chittagong Stock Exchange (CSE) also ended sharply lower, with the CSE All Share Price Index (CASPI) shedding 546 points to settle at 19,529 while it's Selective Categories Index (CSCX) losing 330 points to close at 11,734.
Of the issues traded, 255 declined, 73 advanced, and 12 remained unchanged on the CSE trading floor.
The port-city bourse traded 82.65 million shares and mutual fund units with turnover value of Tk 3.51 billion.
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