After Eid, the country’s stock market fell in the last four trading days. Shares and unit prices of the majority of companies fell, along with all the price indices, which fell sharply. However, the market capitalization of the main stock exchange, Dhaka Stock Exchange (DSE), has increased by more than 21,500 crore rupees within a week.
Earlier, the stock market was in decline for more than two months before the start of the Eid holiday. This reduced the market capitalization of DSE by more than one lakh crore rupees. But the last four working days before Eid, the market is slightly upward. However, it did not benefit the investors much. Investors suffered huge losses on Eid. And after Eid, the share market is showing continuous decline.
The downward trend in the stock market started from January 17 of this year. Bangladesh Securities and Exchange Commission (BSEC) lifted the floor price on January 18 after holding the share price at one place for a long time. Then there was a big shock in the stock market. Just as the stock market was recovering from this shock, the controversial decision about the Z Group was made. Which accelerated the decline of the stock market.
On February 15, the regulatory body BSEC issued a directive on the basis of which the listed companies will go to the Z group. The last point of the directive states that the directive will come into effect from the date of next dividend declaration or annual/interim dividend declaration of the issuer company.
Despite such instructions from the regulatory body, 22 companies were suddenly transferred from the Dhaka Stock Exchange (DSE) to the Z Group on February 18. It was later announced that no more companies would be brought under the Z Group, but later a few more companies were brought under the Z Group. In this way, after some companies were taken to Z Group, the stock market fell in price.
The stock market looks to break out of this downtrend before the Eid holidays begin. But before the start of trading in the stock market after the Eid holiday, Iran launched an unprecedented rocket attack on Israel. There is a fear of instability in the meeting. Which has a negative impact on the stock market. As a result, investors saw a decline in all four trading days last week.
On January 17, the market capitalization of DSE was Tk 7 lakh 88 thousand 449 crores. The market capitalization stood at Tk 6 lakh 84 thousand 734 crore at the end of last business day trading before Eid. In other words, the market capitalization of DSE has lost Tk 1 lakh 3 thousand 715 crore due to continuous decline.
And after Eid, despite the big price drop in the stock market, the market capitalization of DSE increased by Tk 21 thousand 591 crore last week. At the end of last week’s trading, DSE’s market capitalization stood at Tk 7,6,325 crore. However, compared to January 17, the market capitalization of DSE is still less than 82 thousand 124 crore rupees.
In the four working days of trading in the stock market last week, the share and unit prices of most of the companies decreased, 89 companies participating in the trading in DSE during the week entered the list of price increase. On the contrary, the price has decreased to 285. And the price of 21 remains unchanged.
In this, DSE’s main price index DSEX fell by 177.40 points or 3.03 percent. The DSE-30 index, which is made up of good companies picked between the other two indices, fell by 47.81 points or 2.35 percent last week. And the DSE Shariah index, which comprises companies operating on Islamic Shariah basis, fell by 35.74 points or 2.79 percent last week.
All price indices edged lower, but trading speed picked up slightly. An average of Tk 478 crore 20 lakhs was transacted on DSE every working day of the week. In the previous week, the average daily transaction was Tk 434 crore 84 lakh. That is, the average transaction per working day has increased by 43 crore 36 lakh taka or 9.97 percent.
Shares of Asiatic Laboratories were the most traded in rupee terms on DSE during the week. The daily average of the company’s shares was traded at 23 crore 46 lakhs, which is 4.91 percent of the total transactions. Shares of Lavello Ice Cream in the second place traded at Tk 21 crore 7 lakh on average daily. Alif Industries is in the third place with 16 crore 8 lakh rupees.
Besides, the list of top ten trading companies includes Best Holding, Fu-Wang Food, Fu-Wang Ceramics, Golden Son, Central Pharmaceuticals, Shahinpukur Ceramics and Beacon Pharmaceuticals.
