Investors cash out fearing crash

Stocks edged higher last week, extending the rally for six weeks in a row with better turnover as investors focused on selected large-cap stocks ahead of corporate declarations.
The first week after the 9-day Eid vacation featured five trading sessions as usual. Of them, two sessions witnessed sharp gain while three sessions saw mild correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), edged up by 48.12 points or 0.92 per cent to close the week at 5,285.84 points.
The two other indices also closed positive. The DSE30 index gained 4.63 points or 0.23 per cent to close at 1,997.79 points. The DSE Shariah Index rose 23.21 points or 1.90 per cent to close at 1,242.46 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended in the black last week with its Selective Categories Index-CSCX - rose by 130.4 points or 1.33 per cent to close at 9,911.93 points.
Trading remained vibrant at the DSE and turnover totalled Tk 48.10 billion, up from Tk 47.97 billion the week before.
The daily turnover for the week averaged Tk 9.62 billion, registering an increase of 0.26 per cent over the previous week's average Tk 9.59 billion.
The investors' attention was mostly concentrated on fuel and power and pharmaceuticals - the sectors that accounted for 19 per cent and 14 per cent respectively of the week's total turnover.
"Dynamic trading pattern, mostly focused on re-balancing portfolio kept market movement positive, the first week after prolonged Eid vacation," IDLC Investments said in its weekly analysis.
Expectations of quarterly earnings declaration and selected June-ending stocks from the fuel and power sector drew some wise participants into the market, said the merchant bank.
"Stock-wise swing was present alongside investors' preference in fundamentally strong and lucrative issues centering on upcoming earnings declaration," the merchant bank added.
Some investors pursued safe strategy, cashing out their holding on the fear of crash after recent rally, said the merchant bank.
LankaBangla Securities said, "The benchmark index consolidated around 5,300-level in the following four trading sessions of the week."
Consumers in Bangladesh largely have an optimistic economic outlook, despite continued uncertainty in the global economy, according to the MasterCard Worldwide Index of Consumer Confidence.
The major sectors showed mixed performance last week. Food and allied posted the highest loss among the large cap sectors with 1.43 per cent decline. Telecommunication and NBFIs also retraced by 0.65 per cent and 0.62 per cent respectively.
Pharmaceuticals and power posted impressive yields of 4.35 per cent and 4.12 per cent respectively. Banks went up by 1.60 per cent
Gainers outpaced losers as out of 312 issues traded, 199 advanced, 107 declined 6 remained unchanged on DSE floor during the week.
Two listed companies - Dhaka Electric Supply Company (DESCO) and Al-Haj Textile declared corporate declaration last week. DESCO declared 5 per cent cash and 10 per cent stock while Al-Haj Textile recommended 20 per cent stock dividend.
The market capitalisation of the DSE went up slightly by 0.81 per cent as it was Tk 3,439.59 billion on the opening day of the week and it stood at Tk 3,467.46 billion on closing day of the week.
Square Pharmaceuticals dominated the week's top turnover chart with shares worth Tk 2.12 billion changing hands followed by MJL BD, GP, Titas Gas and Delta Life Insurance.
DESCO was the week's top gainer, posting a rise of 21.82 per cent following its dividend declaration while Fu-Wang Food was the week's worst loser, slumping by 14.23 per cent.
[email protected]