Dhaka stocks see sell pressure

FE Report Dhaka stocks finished lower than the previous week as sell pressure gripped the investors in the last three sessions of the week amid high volatility in all the five trading sessions. Starting the week positively the benchmark index of Dhaka Stock Exchange (DSE)-- DGEN plummeted 3.85 per cent or 247.10 points to peg at 6,164.82. The broader DSE All Shares Price Index (DSI) ended at 5,111.06, losing 3.70 per cent or 196.35 points. The DSE-20 index including blue chips lost 5.01 per cent or 206.26 points to 3,909.03. Out of five trading sessions, Index shed in the last three sessions amid strong sell pressure mainly due to concern over formation of Bangladesh Fund. Market insiders said, in the last three trading sessions investors became shaky over comment of the International Monetary Fund (IMF) about the exposure risk in relation to banks' stock market investment. During the week, total turnover of the week increased significantly as it happened to have one more working day compared to the previous week. Total turnover for the week stood at Tk 61.15 billion (USD 886.4 million). However, during the week the daily average turnover value slightly increased. The daily average turnover in the week was Tk 12.2 billion in value terms, slightly up by 1.5 per cent compared to the previous week. The total market capitalization stood at Tk 2772.52 billion at the end of the week, down by 3.40 per cent compared to the previous session from Tk 2,870.11 billion on the opening day of the week. Out of 263 issues traded during the week, only 91 advanced, 171 declined and one issue remained unchanged. Most of the major sectors lost during the week with telecommunication sector suffered most. Grameenphone, the lone listed company in the telco sector lost 8.03 per cent in the week. Among the losers were banking sector and non-banking financial sector lost 6.16 per cent and 4.56 per cent respectively. Insurance sector was also among the losers with general insurances and life insurances losing 7.52 per cent and 2.55 per cent respectively. Cement sector lost 4.18 per cent while pharmaceuticals 1.49 per cent, fuel & power 1.53 per cent and tannery 1.12 per cent were among the few gainers of the week. The week started with a positive movement of DGEN continuing from the last working session of the previous week. The benchmark DGEN went up 57.99 per cent or 0.90 per cent and stood at 6,469.91, Sunday, the opening day of the week with substantially rise in turnover value due to broader participation of the investors. On the day, turnover stood at Tk 15.24 billion after nearly two and half months highest since January 12. On Monday, the Dhaka stocks also gained 58.30 points or 0.90 per cent with substantially rise in turnover as the investors went for fresh buying mainly on banking and power issues. On Tuesday, the DGEN, of the DSE ended at 6,451.85, shedding 1.17 per cent or 76.36 points amid profit taking some sector. The market also experienced sharp decline in the turnover volume and see-saw throughout the whole trading session. However, market experts termed the profit taking, which resulted in a price correction in the market, as a good sign for a sound market. On Wednesday, bearish mood continued with high volatility as investors took cautious stand by selling off shares which prompted main index DGEN go down by 110.93 points or 1.71 per cent. On Thursday, the market also closed negative as the DGEN shed 2.77 per cent or 6,164.81 points. Turnover decreased by 18.5 per cent. Beximco Limited retained its top turnover position during the week with shares worth Tk 4.22 billion changing hands. The other turnover leaders were Peoples Leasing & Financial Services, BEXTEX Limited, Titas Gas, Aftab Automobiles, Golden Son, United Airways, Maksons Spinning Mills Limited, R N Spinning Mills Limited and Union Capital. Bangas was the week's top gainer posting 33.86 per cent. It was followed by Tallu Spinning, Chittagong Vegetable, Pharma Aids, Imam Button, Mithun Knitting, Jute Spinning, Anlima Yarn Dyeing Ltd, Desh Garment and BD Autocars. Eastland Insurance was the top loser of the week followed by Premier Bank Ltd, Phoenix Finance First Mutual Fund, First Lease Finance & Investment Ltd, Quasem Drycells, Asia Insurance Limited, Rupali Insurance, Active Fine Chemicals Limited, United Airways (BD) Ltd and Federal Insurance. Last week nine listed companies made their corporate declaration. Among them Trust Bank recommended 20 per cent bonus share, Union Capital 75 per cent bonus share, Rupali Bank 10 per cent bonus, Reliance Insurance 35 per cent bonus, RN Spinning 30 per cent bonus, PLFSL 75 per cent, First lease International 75 per cent bonus, Padma Oil 50 per cent Cash and 50 per cent bonus and Jamuna oil recommended 30 per cent cash and 20 per cent stock dividends.