Jittery investors pull down stocks

Dhaka stocks finished the week amidst sell-offs as investors were weighed down with apprehensions over the economic fallouts of a recent record fuel price hike. 

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), lost 163.5 points, or 2.59 per cent, to close at 6,148.7

The other major indices -- DSES and DS30 – also ended lower at the end of the week from that in the previous week.

The daily average turnover declined 11 per cent week-on-week to Tk 896 crore, according to the DSE, the main bourse.

Overall market capitalisation declined by nearly 2 per cent.

The stock market passed a gloomy week as the government increased fuel oil prices, said International Leasing Securities in its weekly market review.

From August 6, the government raised the price of diesel and kerosene by 42.5 per cent and petrol and octane by 51.1 per cent and 51.7 per cent respectively.

The hike, the largest in the country's history, could hit the earnings of the listed companies since it would fuel inflationary pressures, which surged to a nine-year high in June before dropping slightly in July.

The International Leasing Securities said, "The jittery investors converted their investments into cash fearing the price hike of necessities driven by the price hike of fuel oil that may raise the overall inflation by the end of the year."

It also cited that the cost of a US dollar rose to a new high of Tk 119 on the kerb market.

Investors' participation remained sparse on the trading floor as most were stuck with losses in their portfolios that caused the average turnover to decrease, it added.

Of the 395 stocks to undergo trade, 41 made gains while 287 dropped, according to the DSE.