FE Report
Most issues under large-cap sectors witnessed further correction last week that ended Thursday.
Banking, financial institutions and food & allied sectors saw major correction.
Of the 19 sectors listed on the prime bourse, except corporate bonds, debenture and treasury bonds, the market-cap of 15 sectors faced correction, while four sectors should upward trend, according to weekly analysis of the Dhaka Stock Exchange (DSE) and LankaBangla Securities.
People familiar with the capital market said the market ended lower for the second week in a row as most investors were reluctant to make fresh exposure in the market amid ongoing liquidity crunch.
Among the major sectors, the heavyweight banking sector, witnessed the highest 1.95 per cent correction as 25 issues out of 30 of the sector drifted lower.
"The ongoing liquidity crunch coupled with global credit rating agency-Standard & Poor's negative report on the banking sectors of Bangladesh prompted the investors to sell banking stocks," said an analyst at a leading brokerage firm.
Of the banks, Dutch-Bangla Bank posted the highest loss of 12.30 to close at Tk 124.50 on Thursday, following its dividend recommendation last week.
The board of directors of Dutch-Bank Bank has recommended 30 per cent cash dividend for the year ended on December 31, 2017.
Among other banks, Jamuna Bank lost 5.90 per cent, closely followed by Rupali Bank with 5.50 per cent, Exim Bank 4.60 per cent, Standard Bank 4.40 per cent, Premier Bank 4.40 per cent, Mercantile Bank 4.30 per cent, Shahjalal Islami Bank 4.20 per cent, Uttara Bank 3.90 per cent and AB Bank 2.90 per cent.
Food & allied sector also lost 1.63 per cent, despite nine issues of the sector nudged higher out of 18, as the sector heavyweight British American Tobacco Bangladesh saw 2.30 per cent rise to close at Tk 3,602.40 on Thursday, the last trading session of the week.
Fine Foods, Olympic Industries and Fu-Wang Food Industries also lost 4.80 per cent, 0.70 per cent and 0.30 per cent respectively.
The non-bank financial institution sector also slumped 1.35 per cent as 17 issues of the sector witnessed price correction, out of 23.
Of the non-bank financial institution issues, GSP Finance saw the highest correction of 7.70 per cent following its price adjustment after record date, followed by Islamic Finance with 7.0 per cent, Midas Financing 6.80 per cent, International Leasing 5.60 per cent, LankaBangla Finance 4.0 per cent, First Finance 3.40 per cent, Union Capital and United Finance lost 2.80 per cent each.
The textile sector also lost 1.30 per cent as share prices of 38 textile companies closed lower, out of 49.
Of the textile issues, Zaheen Spinning was the highest losers, shedding 6.0 per cent, followed by Mozaffar Hossain Spinning Mills with 5.0 per cent, Modern Dyeing 5.0 per cent, Malek Spinning 4.0 per cent, Dacca Dyeing 4.0 per cent and Regent Textile, Tallu Spinning, Mithun Knitting, Matin Spinning, Familytex, Evince Textile, Desh Garment and Al-Haj Textile lost 3.0 per cent each.
On the other hand, cement sector posted the highest gain of 3.55 per cent, largely supported by LafargeHolcim Bangladesh, which gained 5.80 per cent.
Lafarge Surma Cement started trading with its new name LafargeHolcim Bangladesh from Thursday. The company's trading code also changed as "LHBL".
The heavyweight telecom sector with two issues--Grameenphone and Bangladesh Submarine Cable Company Limited (BSCCL) -- also gained 0.20 per cent.
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