Stocks down as investors take to sidelines

Dhaka stocks passed a gloomy week, with the benchmark index closing in the red, wiping out all the gains made in the previous week, as many investors took to sidelines following heavy selloffs amid uncertain economic outlook.
This week, all indices and turnover value posted a decline as major sectors of the Dhaka Stock Exchange (DSE) witnessed price corrections.
Market insiders said a rumour of possible withdrawal of 'floor price' restrictions was one of the reasons behind panic-driven sales that triggered a sharp fall in indices on the first trading day of the week.
The Bangladesh Securities and Exchange Commission (BSEC), however, assured all that no such decision has yet been taken.
At the end of the week, the benchmark DSEX settled 1.15 per cent or 75.26 points lower at 6,494.25.
The Shariah-based DSES index declined 1.65 per cent or 23.78 points to close at 1419.70 points and the DS30 index, comprising blue-chip securities, fell 2.27 per cent or 53.51 points to 2,308.06.
Of 386 issues traded in this week, 101 advanced and 118 declined while 166 others remained unchanged on the premier bourse.
"The investors remained watchful since a majority of stocks were stuck at the floor prices without potential buyers, gradually curbing the turnover in the market," said a market review of EBL Securities.
Many investors were also busy rebalancing their portfolios ahead of the upcoming corporate declarations along with chasing selective stocks with expectation of quick gains, it said.
This week, the DSE posted a total turnover of Tk 48.33 billion, which was 8.44 per cent less than the turnover of the previous week. And the daily average turnover stood at Tk 12.08 billion.
Of the sectors which saw price appreciations, services & real estate advanced 1.4 per cent, jute 8.4 per cent, travel & leisure 4.2 per cent, general insurance 2.5 per cent and paper & printing 6.1 per cent.
"The stock market passed a gloomy week as the investors showed profit-booking tendency throughout the week," said a market review of International Leasing Securities.
It said the fall was also driven by a rumour of possible withdrawal of 'floor price' system.
"Many investors followed a cautious stance amid the ongoing economic turmoil fuelled by the rising inflation while countrywide frequent load-shedding created a confidence crisis among investors."
Of the sectors which witnessed price corrections, banking declined 0.4 per cent, engineering 0.8 per cent, life insurance 1.9 per cent, pharmaceuticals & chemicals 1.7 per cent, miscellaneous 2.0 per cent, financial institutions 2.0 per cent and telecommunications 0.1 per cent.
Investors' participation was concentrated mostly on pharmaceuticals & chemicals sector which grabbed 22.5 per cent of the weekly market turnover followed by miscellaneous (14.01 per cent), financial institutions (14.0 per cent), and paper & printing (8.5 per cent).
Orion Pharma topped the turnover chart, featuring a total turnover of Tk 4.23 billion this week.
Bangladesh Monospool Paper Manufacturing Company was the top gainer with a rise of 33.38 per cent to close at Tk 360.80 each.
Bangladesh Shipping Corporation was the week's worst loser, shedding 11.34 per cent to close at Tk 139.20 each.
The Chittagong Stock Exchange also ended lower this week, with the benchmark CASPI index declining 1.15 per cent to close at 19,110.91 points on Thursday.
Of 313 issues traded, 71 advanced, 108 declined and 134 others remained unchanged, with the CSE posting a total weekly turnover of Tk 731.80 million.

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