Lackluster trade hits stocks

Stocks posted a marginal fall in the outgoing week, extending the losing streak for the fifth straight week, amid persistently lackluster trade.
Week-on-week, the DSEX, the core index of the Dhaka Stock Exchange (DSE), went down slightly by 9.03 points or 0.16 per cent to settle at 5,475.
The benchmark index plunged more than 433 points in the past five consecutive weeks.
Robi's shares fell sharply by 12.28 per cent during the week to close at Tk 39.30 on Thursday as investors dumped its shares following 'no' dividend declaration for 2020. Robi was also week's top loser.
"No dividend declaration by Robi after its first year on the stock market although it witnessed a rise in profits in 2020 upset the investors," said a leading broker.
The telecom operator's earnings per share (EPS) rose seven-fold to Tk 0.33 for the year ended on December 31, 2020. It was Tk 0.04 in the previous year.
Market analysts said the shaky investors continued their sell-offs in major stocks as a lack of positive triggers prevented investors from making fresh investment.
The market remained under pressure in the past few weeks along with sluggish turnover as investors stayed cautious amid ongoing dividend declaration by December-end companies, said a merchant banker.
He noted that pressure on margin loans adjustment to regulatory allowable limit, Bangladesh Bank's circular regarding dividend limit of banks coupled with price fall of large-cap stocks continued to put a negative impact on the market.
"Investors continued sell-offs on major sector stocks, putting pressure on the indices amid sluggish trading," he said.
He noted that as large-cap stocks prices started falling in the last few weeks, investors became wary about further correction which triggered the sell-offs.
The DS30 index, comprising blue chips, also shed 5.12 points to finish at 2,105. However, the DSE Shariah Index gained 6.16 points to close at Tk 1,242.
The weekly total turnover on the prime bourse stood at Tk 44.37 billion, slightly up from Tk 40.86 billion in the week before.
The daily turnover averaged out at Tk 8.87 billion, which was 8.60 per cent higher from the previous week's average of Tk 8.17 billion.
EBL Securities said the investors continued their sidelined approach throughout the week amid the ongoing market volatility.
Lack of institutional investors' participation and unsatisfactory dividend declarations by certain companies also contributed to the current gloomy market situation, said the stockbroker.
The risk-averse investors liquidated their holdings, from telecom, food, bank, power and financial institution sectors to escape further losses, commented International Leasing Securities.
Major sectors showed mixed performances. Food & allied sector saw the highest loss of 4.7 per cent, followed by telecom with 4.5 per cent, banking 2.3 per cent and power 0.3 per cent.
The port city's bourse, Chittagong Stock Exchange (CSE), also ended marginally lower with its CSE All Share Price Index - CASPI - losing 62 points to settle at 15,821 and the Selective Categories Index - CSCX - shedding 41 points to finish the week at 9,544.
Of the issues traded, 130 declined, 90 advanced and 75 remained unchanged on the CSE.
The port city's bourse traded 50.18 million shares and mutual fund units with turnover value of Tk 1.69 billion during the week.

[email protected]