Stocks snap three-week gaining spell

Stocks witnessed a marginal correction last week that ended Thursday, snapping a three-week gaining spell, as risk-averse investors went for short-term profit booking.
Analysts said the market exhibited choppy trading almost throughout the week as most of the investors were cautious amid global economic tension and anticipation of its impact on Bangladesh's economy.
"Uncertainties surrounding the global economic condition and its possible impact on an export dependent country like Bangladesh instigated the investors to dim down their economic outlook," said an analyst.
The week featured five trading sessions as usual. Of them, two sessions edged higher while three saw profit taking sell-offs.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 37.01 points or 0.79 per cent to settle at 4,657.94.
The two other indices also edged lower. The DS30 index, comprising blue chips, fell 10.08 points or 0.57 per cent to finish at 1,751.03. The DSE Shariah Index dropped 1.56 points or 0.14 per cent to close at 1,117.39.
The port city bourse Chittagong Stock Exchange (CSE) ended lower with its Selective Categories Index, CSCX, falling 83.44 points or 0.95 per cent to end at 8,654.39.
"The market passed a volatile week where investors were busy in profit taking and churned their position on stocks," said LankaBangla Securities, a stockbroker, in its weekly analysis.
IDLC Investments, a merchant bank, said, "Investors remained indifferent to the expansionary monetary policy statement (MPS) for the second half of the current fiscal year declared by Bangladesh Bank (BB), as market started in a negative tone on the maiden session and continued to be pessimistic throughout the week".
The merchant bank noted that the repo rate cut, lower inflation target set in the latest MPS failed to inject optimism in the investment sentiment of market participants.
"Rather, investors opted to seek profit making opportunities through surging volatility in the market. Though DSEX crossed 4,700-level 'psychological' level several times during intra-day trading, it could not hold the level as sell pressure surged," said the merchant bank.
The total turnover for the week stood at Tk 29.42 billion which was Tk 31.45 billion in the week before.
The daily turnover averaged Tk 5.88 billion, which was 6.46 per cent lower than the previous week's average of Tk 6.29 billion.
Overall activities remained confined on, engineering, fuel and power and pharma sectors, where they captured 17 per cent, 15 per cent, 13 per cent respectively of the week's total turnover.
International Leasing Securities, a stockbroker, said, "Quick profit booking by the investors created selling pressure during the week".
"The mid two-session of the week witnessed an attempt to revive the market, but failed to sustain amid selling frenzy. Besides, possible slowdown in the global economic growth, which may penalize the country's export earnings, created concern among the investors' mind," said the stockbroker.
The losers took a modest lead over the gainers as out of 330 issues traded, 173 closed lower, 136 higher and 21 issues remained unchanged on the DSE trading floor during the week.
The market capitalisation of the DSE edged down by 0.17 per cent as it was Tk 3,199.26 billion on the opening day of the week and it stood at Tk 3,193.68 billion on closing day of the week.
Only one listed company - HR Textile-recommended 10 per cent cash dividend last week. The company distributed 12.5 per cent cash dividend last year.
Emerald Oil Industries dominated the week's turnover chart with 17.19 million shares worth Tk 1.16 billion changing hands followed by United Power Generation and Distribution Company, Alltex Industries, IT Consultants and BD Thai Aluminium.
Eastern Lubricants was the week's best performer, posting a rise of 52.03 per cent while SEML Lecture Equity Management Fund was the week's worst loser, slumping by 17.65 per cent.
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