Dhaka stocks saw a decline in its indices in the past week, after rising in the previous week, as investors mostly chose to remain on the sidelines amid the ongoing earning declarations.
The DSEX, the benchmark index of the Dhaka Stock Exchange, decreased by 53.63 points, or 1.04 per cent, closing the week at 5,112.90 points after a rise of 32.61 points in the previous week.
The DSE operated on five sessions in the past week, among which the first four sessions witnessed decrease in its key index, and the remaining session witnessed an increase of only 0.38 points.
Several sector-specific stocks, including Renata, Islami Bank Bangladesh, Walton Hi-Tech Industries and Kohinoor Chemicals, dragged the market most this week.
These four stocks contributed a total of 37.5 points to the decrease of the DSEX index.
In addition, investors chose to remain cautious and observe the market seeing media reports regarding the capital market reform taskforce is considering tightening regulations for margin loans.
According to EBL Securities weekly commentary, the market witnessed lacklustre momentum throughout this week with a consecutive losing streak, while the proposed tightening of margin loan regulations induced further caution among investors over the market momentum.
鈥楬owever, bargain hunters emerged in the final trading session to take positions on certain scrips in anticipation of short-term gains responding to favourable earnings calls, providing some cushion to the ailing market,鈥� it said.
Also, inflationary pressure and other economic outlooks remain a concern for the investors.
The tax and VAT hikes by the National Board of Revenue for over a hundred items would eventually worsen the current inflationary pressure in the country, experts said.
On January 9, the revenue authority increased VAT and taxes for over a hundred items. The NBR later revised down the VAT and supplementary duty on a number of items, including restaurants, mobile phone usage, internet services and medicine amid protests.
The average daily turnover on the DSE also decreased to Tk 338.98 crore this week, from Tk 412.67 crore in the previous week.
Of the 397 issues traded, 98 gained, 272 lost value and 26 remained unchanged.
The DS30 index, which tracks blue-chip stocks, increased by 9.19 points, or 0.48 per cent, to close at 1,903.85 points.
The DSE Shariah index lost 27.87 points, or 2.40 per cent, ending at 1,133.98 points.
ADN Telecom led the turnover chart, with an average daily turnover of Tk 10.55 crore.
Agni Systems, Khan Brothers PP Woven Bag Industries, BRAC Bank, Dragon Sweater and Spinning, Orion Infusion, Malek Spinning Mills, Midland Bank, Far East Knitting & Dyeing Industries and ACI were the other turnover leaders.
