Stocks see bearish mood for five weeks

Stocks extended their losing spell for the five weeks in a row that ended Thursday as concern over security and political front kept the investors in gloomy mood.
Analysts said deadly attacks on secular publishers and killing of a policeman, raising security concerns among the city dwellers while the devaluation of taka against US dollar and the pessimistic news of slumping remittance inflow in October took the toll, making investors baffled about their investment outlook.
"Over the past few weeks, the market remained under pressure due to some factors, including weak macro economy and unimpressive third quarter earnings, the latest news has extended the fall," said a leading stockbroker.
The market witnessed five trading sessions as usual. Of them, two sessions closed positive while three sessions ended in the red.
Week-on-week, DSEX, the prime index of Dhaka Stock Exchange (DSE), went down by 62.33 points or 1.37 per cent to settle at four months low to 4,502.16 points.
The two other indices also closed lower. The DS30 index, comprising blue chips, plunged 14.61 points or 0.85 per cent to finish at 1,711.36. The DSE Shariah Index dropped 7.83 points or 0.83 per cent to end the week at 1,084.48.
The port city bourse Chittagong Stock Exchange (CSE) saw steep decline with its Selective Categories Index -- CSCX -- slumping 123.76 points or 1.45 per cent to end the week at 8,367.86.
"The week started in negative note, later two sessions witnessed an effort to revive but could not sustain as quick profit booking pressure penalised the market further," said the International Leasing Securities, in its weekly analysis.
"Shaky macro-economic scenario, concern over security and political front kept the investors in gloomy mood," said the stockbroker.
Turnover remained sluggish on the prime bourse as the total turnover came down to Tk 15.04 billion which was Tk 17.56 billion in the week before.
The daily turnover averaged Tk 3.0 billion, which was 14.36 per cent lower than the previous week's average of Tk 3.51 billion.
IDLC Investments, a merchant bank, said, "On the first week of the month, the desperation of the last week of October further intensified, as DSEX frazzled 62.3 points".
However, during mid-week sessions, market tried to rebound a little bit as most of the quarterly earnings and yearly corporate declarations became available which knocked investors to re-shuffle their position, said the merchant bank.
Besides, vacation of interim stay order by Supreme Court on ICB First Mutual Fund, AIMS First Mutual Fund and Grameen Mutual Fund One encouraged investors much with the hope of liquidation/conversion.
But, by the end of the week, market could not hold the momentum despite several optimistic macroeconomic news of record breaking forex reserve of US$ 27.1 billion, LDCs' exemption from paying patent drugs royalty till 2032 and economic forecast by PricewaterhouseCoopers (PwC) for Bangladesh to be the 23rd biggest economy by 2050, said the merchant bank.
LankaBangla Securities, a stockbroker, said, "Last week has also been a negative one for the stock market as benchmark index of the prime bourse lost 1.36 per cent as investors went for selling spree".
The market breadth remained negative as out of 328 traded issues, 244 closed lower, 69 higher and 14 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went down by 0.70 per cent as it was Tk 3,168.90 billion on the opening day of the week and it stood at Tk 3,146.60 billion on closing day of the week.
Meanwhile, 16 listed companies recommended dividend during the week.
IFAD Autos dominated the week's turnover chart with shares of Tk 962 million changing hands during the week followed by Square Pharma, Lafarge Surma Cement, KDS Accessories and Quasem Drycells.
ICB Third Mutual Fund was the week's best performer, posting a rise of 22.57 per cent while Zeal Bangla Sugar Mills was the week's worst loser, plunging by 25.81 per cent.
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