Stocks extend losses as sell-offs weigh on mkt

Stocks extended losses for the third consecutive week, as investors went on a selling spree heavily, particularly in the first two days of this week.
Although the market ended higher in the last three trading days, it failed to offset the first two days' big fall.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) lost 190.94 points in the first two days of the week while it recovered 177.07 points in the last three days.
Week on week, DSEX went down by 13.87 points or 0.20 per cent to settle the week at 7,062. The DSEX shed a total of 229 points in the past three consecutive weeks.
Market analysts said shaky investors sold off their holdings heavily in the first two trading days amid panic sales. Institutional investors, including the state-run Investment Corporation of Bangladesh, supported the market from the front in the last part of the week but failed to offset the losses.
However, investors are now optimistic as the market is showing signs of recovery amid increasing trading activities, said a merchant banker.
The investors panicked during the first two sessions and went for heavy sell-offs, but the index later bounced back as the investors took position on the stocks at the lucrative price level, according to International Leasing Securities.
"The expected quarterly earnings disclosures also played a major role in keeping the investors active on the trading floor," the stockbroker said.
A good number of listed companies disclosed quarterly earnings and year-end dividend while shares prices of some low-cap companies soared 'abnormally' during the week.
Two other indices also ended sharply lower. The DS30 index, comprising blue chips, dropped 60.43 points to finish at 2,638 and the DSE Shariah Index (DSES) plunged 38.77 points to close at 1,479.
Market capitalisation of the DSE also shed Tk 63 billion or 1.11 per cent during the week and stood at Tk 5,635 billion on Thursday, the last day of the week.
The week's total turnover clocked in at Tk 75.50 billion on the prime bourse as against Tk 60.43 billion in the previous week.
The daily average turnover, however, remained almost the same and amounted to Tk 15.10 billion on the country's premier bourse as against Tk 15.10 billion in the previous week.
Investors were mostly active in the banking sector, grabbing about 14 per cent of the week's total turnover, closely followed by pharma sector (13 per cent) and miscellaneous sector (12 per cent).
Gainers took a modest lead over the losers, as out of 378 issues traded, 205 closed higher, 155 lower and 18 remained unchanged on the DSE trading floor during the week.
Among the major sectors, cement witnessed the highest erosion of 12.60 per cent, followed by food (7.50 per cent), pharma (6.70 per cent), engineering (6.60 per cent), power (6.10 per cent), financial institutions (4.0 per cent) and telecom (3.10 per cent).
On the other hand, miscellaneous sector generated the highest return of 12.50 per cent backed by the sector heavyweight Beximco, followed by banking (2.90 per cent) and general insurance (2.20 per cent).
Beximco -- the flagship company of Beximco Group -- topped the turnover chart with shares worth Tk 8.40 billion changing hands, followed by Delta Life Insurance (Tk 4.31 billion), Orion Pharma (Tk 3.60 billion), IFIC Bank (Tk 3.29 billion) and NRB Commercial Bank (Tk 2.83 billion).
Hamid Fabrics was the top gainer, advancing 66.30 per cent while Heidelberg Cement was the worst loser, shedding 14.30 per cent.
The Chittagong Stock Exchange (CSE) also edged lower, with the CSE All Share Price Index (CASPI) shedding 65 points to settle at 20,628 and the Selective Categories Index (CSCX) losing 41 points to close at 12,392.
Of the issues traded, 174 declined, 148 advanced and 15 remained unchanged on the CSE trading floor.
The port city's bourse traded 80.81 million shares and mutual fund units with turnover value of Tk 2.59 billion.

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