Stocks slip into red amid edgy trading

Babul Barman
The stocks returned to the red last week, after closing higher in the previous week as investors followed cautious stance amid continued instability in the political arena.
The week featured five trading sessions as usual. Of those, two sessions closed positive while three sessions witnessed major correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) dipped below the 'psychological' threshold of 4,500-mark again and ended at 4,472.14 points, losing 37.16 points or 0.82 per cent.
The two other indices also ended in the red. The DS30 index, comprising blue chips lost 10.80 points or 0.63 per cent to close at 1,703.06 points. The DSE Shariah Index shed 7.98 points or 0.73 per cent to close at 1,088.80 points.
The port city bourse Chittagong Stock Exchange (CSE) also returned to the red with its Selective Categories Index - CSCX - lost marginally by 13.91 points or 0.16 per cent to close the week at 8,324.44 points.
Pharmaceutical was the week's most vibrant sector along with fuel and power both capturing 20 per cent of the week's total turnover. Fuel and power also kept its leadership in sectoral gain by appreciating 2.2 per cent.
Turnover scenario gestured some positive signs during the week. The total turnover for the week stood at Tk 17.95 billion against Tk 11.88 billion in the week before as last week saw five trading sessions instead of previous week's four.
The daily turnover for the week averaged Tk 3.59 billion, registering an increase of 20.79 per cent over the previous week's average of Tk 2.97 billion.
IDLC Investments said: "As the first quarter of 2015 ended in political turmoil, investors' expectations for Q1 earnings turned negative with a fearful concern on the overall performance of the economy".
Some investors tried to reverse the downtrend by taking positions in the large caps. However, the enthusiasm was short lived as profit booking pressure wiped out the gain, said the merchant bank, in its weekly market analysis.
LankaBangla Securities said: "Last week started with positive momentum on hope of improvement in political situation. However, index dragged sharply in last couple of days of the week after announcement of renewed countrywide strikes".
Amid cautious trading in the capital market, some value stocks still gave returns to the investors, said the stock broker.
Among the large-cap sectors, power registered the highest gain of 1.89 per cent over the week. NBFIs appreciated by 1.50 per cent. Telecommunications and pharmaceuticals also advanced by 0.97 per cent and 0.61 per cent respectively.
Cement went through a heavy correction of 4.55 per cent. Banks and food and allied also went down reckoning a hefty loss of 1.88 per cent and 1.52 per cent respectively.
The losers took a modest lead over the gainers as out of 319 issues traded, 192 declined, 109 advanced and 18 remained unchanged on the DSE trading floor.
Nine listed companies - Phoenix Finance & Investments, Continental Insurance, United Insurance, Eastland Insurance, Rupali Insurance, Apex Footwear, Islamic Finance & Investments, Jamuna Bank and BSRM Steels recommended dividend last week.
The market capitalisation of the DSE went down slightly by 0.33 per cent as it was Tk 3,141.74 billion on the opening day of the week and it stood at Tk 3,131.49 billion on closing day of the week.
Grameenphone (GP) Limited dominated the week's top turnover chart with shares 3.39 million worth Tk 1.20 billion changing hands during the week followed by MJL BD, ACI, Lafarge Surma Cement and Shasha Denims.
Reckitt Benckiser was the week's top gainer, posting a rise of 15.80 per cent while ONE Bank was the week's worst loser, plunging by 21.79 per cent.
Last week a mutual fund -- Asian Tiger Sandhani Life Growth Fund' made the trading debut. The fund dipped 32 per cent from its offer price in ensuing sessions.
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