DSEX slides as volatility returns to market

Stocks extended the losing streak for the second straight week to Thursday, as jittery investors continued to dump their holdings to avoid further erosion of their portfolio amid market volatility.
Analysts said the market fell further as uncertainty among investors stemming from recent adjustments in the criteria for downgrading companies to the 'Z' category dampened their confidence.
The stock market regulator downgraded 22 low-profile companies to the 'Z' category the first trading day of the week ( Sunday), leading to a selling pressure in the overall market.
Of the 22 companies, five featured in the top weekly losers' list with Khulna Printing being the biggest loser as it plunged by 21.58 per cent. Safko Spinning Mills, Yeakin Polymer, International Leasing, and Union Capital also feature in the top weekly losers' list.
The week saw four trading days as the market was closed on Wednesday due to 'Amar Ekushey' and 'International Mother Language Day'. Of them, the first three days closed lower while the last one managed to edge higher.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) finally went down by more than 62 points or 0.98 per cent to settle the week at 6,273.96. The DSEX shed almost 100 points in the past two straight weeks.
Top index draggers were Beacon Pharma, Beximco Pharma, Khan Brothers PP Woven Bag Industries, Summit Power, Renata, Bangladesh Submarine Cable and Aftab Automobiles as they jointly accounted for a 44-point fall in the key index.
According to EBL Securities, stocks extended their losing streak as cautious investors continued to partially liquidate their holdings and remain watchful of the current volatility in the market.
"Sellers dominated the trading floor throughout the week as investors focused on protecting their funds from the ailing market owing to faded optimism from the consecutive downbeat vibe in the market," said the stockbroker.
However, buyers showed some strength in the last session of the week and led the market to experience a marginal recovery of the incurred losses, said the stockbroker.
Two other indices also ended lower. The DSES index, which represents Shariah-based companies, fell 22 points to 1,360 while the DS30 Index, which consists of blue-chip companies, plunged more than 17 points to 2,139.
The total market turnover also slid further to Tk 33.70 billion this week as against Tk 74.40 billion in the week before, as this week saw four trading days as against last week's five.
Accordingly, the average daily turnover tumbled to Tk 8.42 billion, which was 43 per cent lower than the previous week's average of Tk 14.88 billion.
The pharmaceutical sector kept its dominance on the turnover chart, capturing more than 17 cent of the week's total turnover, followed by engineering (10 per cent) and textile (9.5 per cent).
Losers took a strong lead over the gainers, as out of 398 issues traded, 247 saw price erosion, 121 witnessed price appreciation and 30 remained unchanged on the DSE trading floor.
Most sectors faced price correction while the travel & leisure sector saw the highest loss of 5.10 per cent, followed by tannery, paper, service and non-bank financial institutions.
On the other hand, the jute sector saw the highest price appreciation of 3.8 per cent, followed by textile and ceramic.
Best Holdings became the most traded shares, with shares worth Tk 1.44 billion changing hands, followed by Orion Infusion (Tk 1.38 billion), Fu-Wang Ceramic (Tk 1.13 billion), Aftab Automobiles (Tk 808 million) and Taufika Foods and Lovello Ice-cream (Tk 798 million).
Esquire Knit Composite was the week's top gainer, posting a 22.92 per cent gain while Khulna Printing & Packaging was the worst loser, shedding 21.58 per cent.
The Chittagong Stock Exchange also ended lower for the second week in a row with its All Shares Price Index (CASPI) losing 286 points to close at 18,005 and the Selective Categories Index (CSCX) shedding 167 points to 10,783.
Of the issues traded, 214 declined, 95 advanced and 28 others remained unchanged on the CSE.
The port city bourse traded 22.62 million shares and mutual fund units with turnover value of Tk 738 million.

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