Stocks flat line as market confidence remains weak

Stocks finished the week flat on Thursday with turnover hitting a 10-session high as investors played both sides of the fence.  
Analysts said deep discount in multiple issues attracted opportunistic investors from the sidelines, while some rebalanced their portfolios ahead of the third quarter earnings declarations.
A rally in non-bank financial institutions, cement and pharmaceuticals sectors offset losses in other sectors, including banks, power and telecommunication.
The market began on a downbeat note, but late-buying spree helped the market end flat. DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled the week at 4,765.72, edging up 1.84 points or 0.03 per cent over the previous session.
The DSE Shariah Index (DSES) gained 0.87 points or 0.07 per cent to finish at 1,177.10. However, the DS30 index, comprising blue chips, lost 1.82 points or 0.10 per cent to end the week at 1,823.17.
Turnover, the crucial gauge of the market, hit the 10-session reaching Tk 4.98 billion, which was 43 per cent higher than the previous day's two-month lowest value of Tk 3.48 billion.
"Lucrative price level at several issues, which witnessed notable correction in recent downbeat momentum, lured the investors to take fresh position," said International Leasing Securities, a stockbroker, in an analysis.
IDLC Investments, a merchant bank, said, "The session was indecisive as market moves appeared to lack any conviction in investors' mindset".
The merchant bank noted that the bourse opened with an initial rush of selling, which recovered as fast as it fell. With some pressure afterwards, indices kept on and ultimately closed flat.
"Market passed a muddled day on the last day of the week amid weak market confidence," said LankaBangla Securities, a stockbroker, in an analysis.
Among the major economic updates, inflation slowed by 0.19 percentage points to 6.17 per cent in August from the previous month mainly due to a fall in consumer demand after Eid-ul-Fitr.
The large-cap sectors showed mixed performance. NBFIs advanced by 1.28 per cent and banks retraced by 0.53 per cent. Mutual funds were among the losers, with nine appearing on top ten losers' chart.
Cement posted gains of 0.84 per cent. Food and allied and pharmaceuticals advanced by 0.53 per cent each. Power went through a correction of 0.37 per cent, while telecommunications lost 0.15 per cent.
Gainers outpaced the losers, as out of 313 issues traded, 174 advanced, 95 lost and 44 remained unchanged on the DSE trading floor.
Activities increased on the major bourse, where volume and trade went up by 44.63 per cent and 26.65 per cent respectively. A total number of 0.1255 million trades were executed, with 131.5 million securities trading.
The market capitalisation of the DSE stood at Tk 3,347.09 billion against Tk 3,344.42 billion in the previous session.
The newly-listed Aman Feed dominated the day's turnover chart for the third consecutive session with shares of Tk 606 million changing hands. However, the company's share lost 6.80 per cent to close at 79.5 on Thursday.
Anwar Galvanizing was the day's best performer, posting a rise of 9.87 per cent, while ICB First Mutual Fund was the day's worst loser, plunging by 10 per cent.
The port city bourse Chittagong Stock Exchange (CSE) also closed slightly higher, with its Selective Categories Index - CSCX - gaining 5.50 points to settle the week at 8,891.60.
Gainers beat losers, with 22 issues remaining unchanged on the port city bourse that traded 12 million shares and mutual fund units valued at Tk 387 million.
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