Dhaka stocks plunged in the past week after witnessing a marginal increase in the previous week, as investors went for selling shares heavily, market operators said.
They said that investors were suffering from a crisis of confidence amid the bearish vibe on the market.
Investors also reacted negatively after the Dhaka Stock Exchange downgraded 28 companies to the 鈥榋鈥� category due to their non-compliance with securities laws on September 26, market operators said.
DSEX, the key index of the DSE, lost 96.14 points, or 1.68 per cent, in the past week to end at 5,639.13 points, after increasing by 8.75 points in the previous week.
Saiful Islam, president of the DSE Brokers Association of Bangladesh, told 抖阴精品 that investors were not prepared for so many companies being downgraded at once.
鈥楢mid the current crisis confidence, it would have been better if a prior notice was given regarding the downgrading of the companies. Investors would have been able to prepare themselves better,鈥� he said.
He added that investors had not seen any improvement in the capital market over the past 15 years.
Ashequr Rahman, managing director of Midway Securities, said that when policy rates got hiked, interest rate rose and the capital market witnessed fall.
The total turnover on the DSE rose in the past week to reach Tk 3,396.54 crore compared with that of Tk聽2,452.34 crore in the previous week.
Of the 396 issues traded in the past week, 40 increased, 349 decreased and seven stayed the same.
Investors were mostly active in bank scrips, followed and pharmaceutical and textile shares.
EBL Securities in its weekly market commentary said, 鈥楧espite the market experiencing some positive momentum early in the week due to bargain hunters鈥� buying interest in the resilient bank sector scrips, the market succumbed to the subsequent selling pressure from cautious investors in the final two sessions, leading the benchmark index plunging into negative territory after a week of marginal recovery.鈥�
The DS30 index decreased by 41.51 points, or 1.97 per cent, to finish at 2,064.93 points.
The DSE Shariah index gained 4.13 points, or 0.97 per cent, to close at 1,261.94 points in the past week.
BRAC Bank topped the average weekly turnover chart with shares worth Tk聽48.39 crore changing hands per session.
Grameenphone, Islami Bank Bangladesh, Sonali Aansh Industries, Social Islami Bank, The IBN SINA Pharmaceutical Industry, Linde Bangladesh, Taufika Foods and Lovello Ice-cream, Agni Systems, and Square Pharmaceuticals聽were the other turnover leaders.