Stocks end lower after demutualisation

The market opened the week with further decline in indices Sunday with turnover on the premier bourse dipped below Tk 4.0 billion-mark, as the investors preferred to remain meticulous and conservative regarding turnaround after dumutualisation.
It was the first trading session after new boards took charge of demutualised stock exchanges --- Dhaka Stock Exchange (DSE) and Chittagong Exchange (CSE).
The market opened with a positive note, but could not sustain. At the end of the trading session, the prime index of the DSE --- DSEX --- went down by 45.45 points or 0.95 per cent to close at 4,713.87 points.
The other two indices also ended lower. The DS30 index, comprising blue chips went down by 15.97 points or 0.94 per cent to close at 1,680.68 points. The DSE Shariah Index (DSES) lost 10.32 points or 1.03 per cent to close at 985.42 points.
The total turnover on DSE came down to Tk 3.90 billion, registering 26.90 per cent decline over the previous session's turnover value of Tk 5.34 billion. It was the 28-session lowest turnover since Tk 3.15 billion on January 6 last.
"Preceding week's waning tone extended further as the day's session resumed with price correction," IDLC Investments observed in its daily market analysis.
During the whole trading session, market level correction took place and forced prime index to decline by 45 points to close at the half month's lowest points of 4,714.
"The investors somewhat preferred to remain meticulous and conservative regarding turnaround after dumutualisation," the merchant bank stated.
Consequently, the turnover shed off by 26.90 per cent and recorded 28 sessions' lowest of Tk 3.90 billion, it added.
The market faltered Sunday amid sluggish turnover activity. The turnover was Tk 3.90 billion which was 26.90 per cent lower than average daily turnover of last week which was Tk 5.79 billion.
"The market falling with rapid decline in turnover may indicate that sellers were unwilling to sell stocks at these price levels," said the stock broker.
All the sectors got beaten. The market had come close to a support level of 4,700. The technical investors were probably expecting a reversal from this 4,700 level.
The corporate profitability especially for cyclical companies is expected to be better in 2014 compared to 2013, said the merchant bank.
"Now it is a matter to observe at which level the investors feel like putting money in equity," the stock broker added.
Meanwhile, Mini Cap and Small Cap performed the worst among Cap classes, which is usual during any downtrend.
The losers took a strong lead over the gainers, as out of 287 issues traded, 166 declined, 83 advanced and 38 closed unchanged on the DSE floor.
All the major sectors ended lower except food and allied which gained 0.97 per cent. Pharmaceuticals and banks were the biggest losers with losing 1.48 per cent and 1.11 per cent respectively.
Telecommunications and fuel and power sectors went down by 0.99 per cent and 0.96 per cent respectively. Textiles sector lost the least 0.79 per cent.  
Activities decreased in the major bourse, DSE, where volume and trade were down 25.95 per cent and 24.75 per cent respectively. A total of 0.084 million trades were executed with 71.01 million securities of trading volume.
The market capitalisation of the DSE stood at Tk 2,880.36 billion against Tk 2,899.33 billion in the previous session.
Delta Life Insurance continued to dominate the top turnover chart with shares worth Tk 263.32 million changed hands followed by BSCCL, Meghna Petroleum and Olympic Industries.
Newly-listed AFC Agro Biotech was the day's highest gainer, posting a rise of 5.09 per cent, while RAK Ceramics was the day's worst losers, slumping by 10.11 per cent.
The port city bourse --- CSE also closed lower with its Selective Categories Index - CSCX lost 92.24 points to close at 9,269.76 points.
Losers beat gainers 145 to 49, with 26 issues remaining unchanged at the port city bourse that traded 7.42 million shares and mutual fund units, turnover value of Tk 350.32 million.