Bangladesh’s capital market extended its losing streak over the past week, with market capitalisation on the Dhaka Stock Exchange (DSE) shrinking by more than Tk 10,500 crore amid a broad-based decline in share prices.
The market opened the week on Sunday with a capitalisation of Tk 6,86,368 crore, which fell to Tk 6,75,866 crore by Thursday, marking a weekly erosion of Tk 10,501 crore.
The sharp fall was driven by price declines in the majority of listed companies. Over the week, prices rose for only 32 companies, while 335 saw declines. Prices of 22 companies remained unchanged and 24 companies did not participate in trading.
All indices on the DSE dropped by more than 2 percent during the week. The benchmark DSEX index, which started at 4,963 points, closed at 4,831 points. Due to the Victory Day holiday on December 16, trading took place for four sessions, during which the DSEX lost 132 points, or 2.67 percent.
Year-on-year, the DSEX has fallen 7.38 percent. At the same time last year, the benchmark index stood at 5,216 points.
Among other indices, the blue-chip DS30 lost 43 points; 2.28 percent in a week, while the Shariah-based DSES fell 33 points; 3.25 percent. The SME index, DSMEX, shed 24 points-- 2.77 percent.
The average daily turnover also weakened alongside the decline in market capitalisation and indices. Weekly average turnover dropped by more than 7 percent, falling from Tk 417 crore at the beginning of the week to Tk 387 crore by the final session.
Out of the DSE’s 21 sectors, only seven recorded price gains, while the rest witnessed declines. The banking sector posted a 6 percent fall, while prices of non-bank financial institutions plunged by nearly 32 percent.
Among the two insurance sectors, general insurance gained more than 19 percent, but life insurance suffered a steep 38 percent decline. In addition to general insurance, prices also gained in the ceramic, corporate bond, food, mutual fund, real estate and textile sectors.
Sector-wise turnover also deteriorated, with trading volume declining in almost all sectors except life insurance, corporate bonds, mutual funds and textiles.
The non-bank financial institution sector saw its turnover fall by an average of about 52%.
Top Gainers
Of the top 10 gainers on the DSE, five were ‘A’ category companies that regularly pay dividends of 10 percent or more, two were ‘B’ category firms, and three were ‘Z’ category companies that do not pay dividends. Most of the top gainers belonged to the mutual fund sector.
B-category Bangas Ltd topped the gainers’ list, posting a return of nearly 15 percent over four sessions. Its share price rose from Tk 113.50 to Tk 130.50.
Reliance One: The First Scheme of Reliance Insurance Mutual Fund ranked second, gaining 14.71 percent, with unit prices rising from Tk 13.60 to Tk 15.60.
CAPM IBBL Islamic Mutual Fund secured the third position, with a return of more than 13 percent, as its unit price climbed from Tk 6.80 to Tk 7.70.
Z-category Bangladesh Welding Electrodes Ltd stood fourth, gaining over 8 percent, with its share price rising from Tk 12.20 to Tk 13.20.
Union Insurance Company Limited ranked fifth, posting an 8 percent return as its share price increased from Tk 32.50 to Tk 35.10.
Top Losers
Most of the top losers were Z-category companies, except one A-category and one B-category firm. The top two decliners were both from the sugar industry.
Shyampur Sugar Mills Ltd suffered the steepest fall, with its return plunging by nearly 21 percent. Its share prices fell by over Tk 40 within a week.
Another Z-category sugar mill, Zeal Bangla Sugar Mills Ltd, ranked second, losing over 17 percent as its share price fell by nearly Tk 30 over four sessions.
AFC Agro Biotech Ltd placed third with a decline of around 17 percent, followed by Khan Brothers PP Woven Bag Industries Limited, which fell 16.64 percent. FAS Finance & Investment Limited ranked fifth, shedding more than 16 percent.
CSE’s Sharp Fall
Like the DSE, the Chittagong Stock Exchange (CSE) also witnessed a significant downturn, with all indices falling by more than 1.5 percent over four trading sessions.
The overall CASPI index dropped 247 points, or 1.78 percent, while the blue-chip CSE30 lost 217 points, or 1.76 percent. The CSCX index, comprising dividend-paying A and B category companies, fell 148 points, or 1.72 percent.
Another blue-chip index, CSE50, declined 19 points, or 1.77 percent, while the Shariah-based CSI lost 17 points, or 2.02 percent.
Out of 250 traded companies on the CSE, prices fell for 159, rose for 71 and remained unchanged for 20.
Bangas Ltd also topped the gainers’ list on the CSE, followed by GQ Ball Pen Industries Limited.
On the losing side, Apex Spinning & Knitting Mills recorded the sharpest fall, shedding more than 19 percent. Its share price dropped from Tk 220 at the start of the week to Tk 177 by the end.
Emerald Oil Industries Limited ranked second among the losers, with its share price falling by more than 17 percent, or Tk 3 per share, over the week.