Stocks return to red amid cautious trading

After a single week break, the stock market plunged into the red as cautious investors booked profit and re-balanced their portfolios during the week, notwithstanding improved turnover.
Despite infrequent profit taking, Large Cap segment remained positive over corporate declarations and merger news. The investors' attention was mostly focused on heavy weighted scrips, especially multinational companies.
GrameenPhone (GP), Square Pharma, Lafarge Surma Cement and Heidelberg Cement captured 10 per cent, 9 per cent, 8 per cent, 7 per cent and 6 per cent respectively of the week's total turnover.
The week featured all five trading sessions. Among them, the market went down three sessions while two sessions closed positive.
Week-on-week, the prime index of Dhaka Stock Exchange (DSEX) went down marginally by 28.49 points or 0.62 per cent to close the week at 4,592.73 points.
The other two indices, however, ended in green. The DS30, comprising blue chips, gained 5.48 points or 0.33 per cent to close at 1,675.63 points. The DSE Shariah Index (DSES) went up by 11.75 points or 1.77 per cent to close at 1,020.22 points.
The port city bourse --- the Chittagong Stock Exchange (CSE) also went down marginally with its Selective Categories Index - CSCX lost 58.35 points or 0.65 per cent to close the week at 8,900.70 points.
The market participation, however, improved significantly last week as total turnover on DSE amounted to Tk 25.52 billion, which was Tk 18.98 billion in the previous week.
The average daily turnover for the week stood at Tk 5.10 billion, registering 34.39 per cent increase over the previous week's average of Tk 3.79 billion.
"Preeminent Large Caps, especially multinational companies like Lafarge Surma Cement, Heidelberg Cement and GP gravitated the flow of funds to itself, leaving Smaller Cap classes dry and offbeat," commented IDLC Investments, in its weekly market analysis.
As the merger news of Lafarge of France and Holcim of Switzerland spread, Lafarge Surma Cement was in an upswing throughout the week, said the merchant bank.
Meanwhile, Heidelberg Cement followed over continuing optimism in its dividend declaration. With the support of these factors, Cement sector performed robustly alongside capturing the lion's share in turnover, the merchant bank said.
At the later part, financial sector, particularly banks, came on the frontline. In the meantime, supported by the increased participations, turnover improved further, it said.
Since heavy-weighted segments performed well for a couple of sessions, some cautious investors drove for booking profit or re-balancing portfolio. The resultant impact was a number of flat endings at the rest of week. However, activity was better than that of the last week, the merchant bank added.
"Market passed a mixed week. Turnover activity was very high. Average daily turnover this week was 34.39 per cent higher compared to previous week," said LankaBangla Securities, in its weekly market analysis.
"But these activities were highly concentrated. We saw very high enthusiasm in some stocks, especially GP, Heidelberg and Lafarge," said the stock broker.
"Heidelberg had declared huge cash dividend of Tk 38 per share last week for year ended in 2013. Investors took this positively and Heidelberg rose by 20.1 per cent this week. Lafarge's probable merger with Holcim also boosted Lafarge's price," said the stock broker.
"Investors were also very upbeat about GP this week. Probably they are expecting GP to show good financial figures this year, as last year's adverse tax effect will not be there," the stock broker added.
The losers took a strong lead over the gainers as out of 301 issues traded during the week, 231 declined, 57 advanced and 13 issues remained unchanged on the DSE floor.
Among the major sectors, telecommunications gained 11.67 per cent, the highest - thanks to the largest cap stock GP, which appreciated 13.1 per cent in the week. Pharmaceuticals gained 2.0 per cent, the only other sector which ended in green.
The financial sector - banks lost 1.74 per cent and NBFIs 3.54 per cent the most among the major sectors. Fuel & power lost 1.52 per cent and food & allied also lost 0.76 per cent.
A total of six listed companies - Nitol Insurance Company, Reckitt Benckiser, FAS Finance & Investments, Phoenix Finance & Investments, Bangladesh Lamps and Northern General Insurance made corporate declaration during the week.
The market capitalisation of the DSE went up slightly by 0.96 per cent as it was Tk 2,913.73 billion on the opening day of the week and it stood at Tk 2,941.62 billion on closing session of the week.
GrameenPhone (GP) dominated the week's top turnover chart with shares worth Tk 2.58 billion changing hands during the week followed by Lafarge Surma Cement, Heidelberg Cement, Padma Oil and Olympic Industries.
Heidelberg Cement was the week's top gainer, posting a rise of 20.94 per cent following its corporate declaration of 400 per cent final cash dividend while Northern Jute Manufacturing was the week's worst loser, slumping by 25.04 per cent.