Stocks extend losing spell for third straight week

FE Report
Stocks posted modest fall last week, extending the losing spell for the third week in a row, as investors booked marginal profit on large-cap stocks.
Analysts said negative tone prevailed in the market due to the lack of clear direction and participants continued pursuing meticulous strategy ahead of Eid festival.
Large-cap stocks suffered big losses. The news of proposed merger between Robi and Airtel battered investors' sentiment on GP, which suffered losses 3.1 per cent during the week. Lafarge Surma and Square Pharma also lost 5.0 per cent and 1.7 per cent respectively.
The week witnessed five trading sessions as usual. Of them, two sessions faced downturn while three sessions witnessed marginal gains.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 5.58 points or 0.12 per cent to settle the week at 4,760.14.
The two other indices also closed in the red. The DS30 index, comprising blue chips, lost 8.58 points or 0.47 per cent to finish at 1,814.59. The DSE Shariah Index shed 9.45 points or 0.80 per cent to end the week at 1,167.66.
The port city bourse Chittagong Stock Exchange (CSE) also edged down slightly with its Selective Categories Index - CSCX - lost 20.37 points or 0.23 per cent to close the week at 8,869.87.
Turnover, however, improved and the week's total turnover amounted to Tk 22.16 billion against Tk 19.70 billion in the week before.
The daily turnover for the week averaged Tk 4.43 billion, registering an increase of 12.5 per cent over the previous week's Tk 3.94 billion.
Investors were most active in pharma and power sectors, which captured 15.6 per cent and 12.7 per cent respectively of the week's total turnover.
"The week closed flat with internal bleeding in large-cap stocks," said IDLC Investments, a merchant bank, in its weekly analysis.
The merchant bank noted that the market started slightly positive last week as positive news on broad regulatory and economic environment hit the bourse.
In continuation of effort to improve regulatory environment, Financial Reporting Bill was passed in the parliament, which is expected to enhance accountability in the market, said the merchant bank.
International Leasing Securities, a stockbroker, said, "In the absence of any clear direction of forthcoming market outlook, the nervousness persisted among the investors, which might have lured the investors to book quick gain".
LankaBangla Securities, a stockbroker, said, "Benchmark index of DSE ended in flat red zone due to selling spree in last half of the week".
Some of the heavyweights dragged down the index last week as GP, Square Pharma and Lafarge Surma were down by 3.1 per cent, 1.7 per cent and 5.0 per cent respectively, the stockbroker said.
"Pharma, fuel and power and engineering stocks were the market mover last week," said the stockbroker.
"The market continued to extend bearish trend for three consecutive weeks amidst the investors' profit booking attitude along with cautiousness," said Research and Innovation Lab, a research unit of Royal Capital.
Market volatility regressed by 40.83 per cent last week in compared to previous week, indicating higher market risk, it said.
"Due to upcoming religious festival, market bearish trend is expected to continue along with relatively low investors' participation for the upcoming week," said the observed.
The major gaining sectors were tannery sector 4.04 per cent, engineering 1.12 per cent and textile 0.52 per cent.
The major losing sectors were telecommunication 3.01 per cent, NBFIs 0.89 per cent and fuel and power 0.57 per cent.
Gainers outpaced losers as out of 326 issues traded, 155 advanced, 143 declined and 28 remained unchanged on the DSE floor during the week.
The market capitalisation of the DSE went down further by 0.45 per cent as it was Tk 3,347.09 billion on the opening day of the week and it stood at Tk 3,331.88 billion on closing day of the week.
Two listed companies - Bangladesh Submarine Cable Company Ltd (BSCCL) and Shasha Denim recommended divided last week. BSCCL recommended 10 per cent stock dividend while Shasha Denim recommended 10 per cent interim cash dividend.
The newly listed Aman Feed dominated the week's top turnover chart with shares worth Tk 972 million changing hands followed by Square Pharma, United Airways, Emerald Oil and Lafarge Surma Cement.
Aramit Cement was the week's best performer, posting a rise of 25.59 per cent while AIMS First Mutual Fund was the week's worst loser, plunging by 32.50 per cent.
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