Weekly market review

Stocks fall as investor sentiment dips

Average daily turnover slumps 38pc on prime bourse

FE REPORT | Saturday, 29 October 2022

Stocks ended the outgoing week in the red, extending the losing streak to a third week, as the investors continued selloffs on sector-specific shares amid the ongoing earnings season.
Of the five trading days during this week, the first two sessions suffered losses while the remaining three ended higher as the market was trying to rebound from the prolonged bearish trend.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), finally settled the week 14.30 points, or 0.22 per cent, lower at 6,378. The index eroded 116 points in the previous two consecutive weeks.
Market experts said investors are yet to regain confidence as they remained sceptical about the market outlook amid the current macroeconomic adversities in the country.
The global economic contraction and recent macroeconomic adversities have weighed on investor sentiment, said a merchant banker requesting anonymity.
EBL Securities said the market started to recover from the recent bearish trend in the last three sessions of the week as investors opted to take positions in some sector-specific issues that were trading at a lucrative price level.
"Investors are optimistic regarding a quick resolution of the issue related to purchasing stocks before cheque encashment," said the stockbroker.
However, some investors remained concerned regarding the gloomy earning forecasts of the listed companies influenced by the ongoing macroeconomic adversities, as well as the majority of scrips remaining stuck at the floor price.
This week's total turnover clocked Tk 35.83 billion on the prime bourse as against Tk 58.01 billion in the previous week.
The daily turnover averaged out at Tk 7.16 billion, down 38 per cent over the previous week's average of Tk 11.60 billion.
On Monday, the market suffered a technical glitch and the trading hour reduced to 1:43 hours that caused the average turnover to decrease by 38 per cent, according to International Leasing Securities.
The pharmaceuticals sector dominated the turnover chart, grabbing 19 per cent of the week's total turnover, followed by miscellaneous (18.5 per cent) and engineering (14.6 per cent).
Two other indices of the DSE also ended lower. The DS30 Index, comprising blue-chip companies, fell 11.84 points to close at 2,266 and the DSES Index shed 4.54 points to finish at 1,402.
Major sectors suffered losses. The food sector saw the highest loss of 1.20 per cent, followed by engineering with 0.50 per cent, banking 0.40 per cent, cement 0.40 per cent and non-bank financial institutions 0.10 per cent.
However, investors' enthusiasm focused on the small-cap sectors like paper & printing which saw remarkable gains of 5.80 per cent followed by IT 5.0 per cent.
Most of the traded issues, however, remained stuck at the floor price without potential buyers. Of the 384 issues traded, 84 declined, 71 advanced and 229 remained unchanged on the DSE trading floor.
Beximco was the most-traded stock with shares worth Tk 3.27 billion changing hands during the week, followed by Orion Pharma (Tk 2.05 billion), Sonali Paper (Tk 1.72 billion), Sea Pearls Beach Resorts (Tk 1.41 billion ) and Intraco Refueling Station (Tk 1.40 billion).
Newly listed Navana Pharma was the week's top gainer, soaring 60.20 per cent while Syringes & Medical Devices was the week's worst loser, losing 19.50 per cent.
The Chittagong Stock Exchange (CSE) also ended marginally lower, with the CSE All Share Price Index (CASPI) losing 21 points to settle at 18,779 and its Selective Categories Index (CSCX) shedding 13 points to close the week at 11,255.
Of the issues traded, 71 declined, 57 advanced and 177 issues remained unchanged on the CSE trading floor.
The port-city bourse traded 16.84 million shares and mutual fund units with turnover value of Tk 922 million.

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