Stocks break two-day winning streak

Stocks witnessed a major correction on Thursday, snapping a two-day gaining streak, as investors were mostly on selling spree amid ongoing dividend declaration session.
Dealers said the market backed to the red as the risk-averse investors booked profits on quick-gaining December ending companies, especially banks and non-bank financial institutions issues.
The banking sector posted the highest correction of 1.40 per cent, followed by non-bank financial institutions with 1.30 per cent and food & allied 1.10 per cent.
"Lower-than-expected dividend declaration of some companies, especially LankaBangla Finance, dragged investors sentiment down," said an analyst at a leading brokerage firm.
The LankaBangla Finance recommended only 15 per cent dividend (7.50 per cent cash and 7.50 per cent stock) for the year ended on December 31, 2017, lowest dividend in the last two years.
In 2016, the company disbursed 30 per cent dividend (15 per cent cash and 15 per cent stock).
Following the previous two days' upward trend, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened on negative note amid low trading activities.
The downward trend continued till end of the session amid modest volatility. Finally DSEX shed 52 points while CSE All Share Price Index (CASPI) fell 156 points at closing.
DSEX, the prime index of the DSE, went down by 52.10 points or 0.85 per cent to settle at 6,050 over the previous day.
"The market nosedived as the investors' bagged profits from December ending stocks," commented International Leasing Securities, in an analysis.
The stockbroker noted that selling of shares mostly in the bank, financial institution, food and fuel & power sectors contributed to the fall in the indices.
"Total turnover decreased by 18 per cent as some of the investors took "wait-and-see" stance ahead of December ending company's dividend declarations," the stockbroker said.
The two other indices ended lower. The DS30 index, comprising blue chips, fell 19.60 points to close at 2,231. The DSE Shariah Index ended 5.18 points lower to settle at 1,405.
Share price of more than 66 per cent traded issues declined as out of 339 issues traded, 221 closed lower, 76 higher and 39 remained unchanged on the DSE trading floor.
According to EBL Securities, the market started with profit booking tendency that continued till the end of the session as the cautious investors were cautions regarding forthcoming year-end declaration of banks and non-bank financial institutions issues.
The stockbroker noted that the investors' watchful stance pulled down the index to the red zone as selling pressure was spurred on stocks from bank, financial institutions and food & allied sectors.
All the major large-cap sectors posted negative movements. Among the major sectors, banking witnessed the highest correction of 1.40 per cent, followed by non-bank financial institutions with 1.30 per cent, food & allied 1.10 per cent.
Telecommunication, engineering and pharmaceuticals also lost 0.30 per cent each.
Unique Hotel & Resorts topped the turnover chart with shares worth Tk 276 million changing hands, closely followed by Grameephone, Monno Ceramic Industries, Brac Bank, and Square Pharmaceuticals.
Republic Insurance Company was the day's highest gainer, posting a gain of 6.62 per cent while Meghna Pet Industries was the worst loser, losing 9.25 per cent.
Port city bourse CSE also returned to the red with CSE All Share Price Index - CASPI- shedding 156 points to settle at 18,722 and Selective Categories Index - CSCX - losing 91 points to finish at 11,297.
The losers beat the gainers as 167 issues closed lower, 59 ended higher and 18 remained unchanged on the CSE.
The port city bourse traded 10.21 million shares and mutual fund units worth nearly Tk 277 million in turnover.

[email protected]