Stocks fall as investors weigh earnings

The benchmark equity index retreated into the red in the last week before the Eid holiday as cautious investors opted to book profit on quick-gaining stocks.
The week to Thursday featured five trading days as usual -- three sessions closed positive while two others faced corrections.
Week on week, the prime DSEX index of the Dhaka Stock Exchange (DSE) drops 6.70 points or 0.10 per cent to settle at 6,655 after gaining over 77 points in the week before.
Market operators said the cautious investors booked profit on sector-specific stocks which failed to meet investors' expectations in terms of latest corporate declarations.
A number of listed companies posted their quarterly earnings and year-end dividend declarations during the week.
Some investors also rebalanced their portfolios during the week based on latest corporate declarations, said a merchant banker.
As the institutional investors became active, the week's total turnover jumped to Tk 40.58 billion on the prime bourse as against Tk 27.44 billion in the week before.
The daily turnover averaged out at Tk 8.11 billion, up 48 per cent from the previous week's average of Tk 5.48 billion.
The regulatory measures to increase institutional funds flow into the market led to the higher market turnover, said a leading broker.
The securities regulator also raised the lower circuit-breaker to 5.0 per cent from 2.0 per cent, giving investors a breather, he said.
"The week began on a positive note but the market subsequently moved sideways. The risk-averse retail investors continued their selling spree on sector-specific issues ahead of Eid festival," said International Leasing Securities in its weekly market analysis.
During the week, some of the institutional bargain hunters showed their buying interest on the sector-wise issues while some of the stocks declared better earnings compared to the previous quarter, it added.
According to EBL Securities, the investors concentrated on sector-specific stocks based on recent earnings declarations, but sentiment remained shaky owing to macroeconomic vulnerabilities.
"Investors' participation has seen an uptick owing to portfolio restructuring by investors as most companies declared their earnings during the week," said the stockbroker.
Two other DSE indices also ended lower. The DS30 index, comprising blue chips, fell 17.31 points to finish at 2,460 and the DSE Shariah Index (DSES) dropped 17.64 points to close at 1,446.
Market capitalisation of the DSE rose slightly by 0.25 per cent to Tk 5,369 billion on Thursday, up from Tk 5,356 billion in the week before.
Most major sectors faced corrections with telecoms witnessed the highest loss of 1.50 per cent, followed by pharma (1.50 per cent), engineering (0.50 per cent), food (0.50 per cent), and power (0.50 per cent).
On the other hand, general insurance and banking sectors gained 1.90 per cent and 1.0 per cent respectively.
Of the 387 issued traded, 198 declined, 155 advanced and 34 issues remained unchanged on the DSE trading floor.
Beximco -- the flagship company of Beximco Group -- was the most-traded stock with shares worth Tk 2.49 billion changing hands, followed by JMI Hospital Requisite Manufacturing, IPDC Finance, Orion Pharma and Bangladesh Spinning Corporation.
Unique Hotel & Resorts was the week's top gainer, posting a 19.49 per cent gain, while Gemini Sea Food was the worst loser, shedding 12.14 per cent.
The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) losing 119 points to settle at 19,474 and its Selective Categories Index (CSCX) shedding 72 points to close the week at 11,684.
Of the issues traded, 197 declined, 123 advanced and 20 issues remained unchanged on the CSE trading floor.
The port-city bourse traded 44.08 million shares and mutual fund units with turnover value of Tk 1.31 billion.

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