FE Report
Most of the sectors witnessed correction last week that ended Thursday as several listed companies' dividend declaration failed to satisfy investors' expectation.
Of the 19 sectors listed with the prime bourse, except corporate bonds, debenture and treasury bonds, the market cap of 13 sectors closed lower while six ended higher, according to weekly analysis of the Dhaka Stock Exchange (DSE) and LankaBangla Securities.
Among the major sectors, pharmaceuticals sector posted the highest correction of 2.04 per cent as large-cap issues of the sector witnessed sharp correction after dividend declaration.
Of the pharma sector issues, ACI Formulations was the top loser, losing 10.80 per cent after the company recommended 15 per cent final cash dividend for the year ended on June 30, 2017 last week.
ACI also lost 8.60 last week as the company recommended final 40 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2017 during the week.
Libra infusions was the second highest loser in the pharma sector, plunging by 10.70 per cent despite the company recommended 30 per cent cash dividend for the year ended on June 30, 2017 last week.
Beximco Pharma also lost 9.70 per cent as the board of directors of the company recommended 12.50 per cent cash dividend for the year ended on June 30, 2017 which could not meet the investors' expectation.
The banking sector fell 0.28 as investors continued to sell bank shares in a reaction to the central bank's recent punitive action against seven banks.
Of the banks, Islami Bank posted the highest loss of 5.40 per cent, as the bank's earnings per share (EPS) fell 32.60 per cent to Tk 0.31 in July-September, 2017 as against Tk 0.46 in the same period a year ago, which failed to satisfy investors' expectation.
Dutch-Bangla Bank followed next, losing 7.80 per cent, followed by National Bank 5.30 per cent, IFIC Bank 3.80 per cent, Rupali Bank 3.50 per cent, Dhaka Bank 3.20 per cent, and Trust Bank 2.70 per cent.
Other losing sectors were paper & printing 4.71 per cent, IT 3.91 per cent, services & real estate 1.85 per cent, jute 1.14 per cent, cement 1.04 per cent, mutual fund 0.97 per cent, tannery 0.76 per cent, insurance 0.57 per cent, fuel & power 0.51 per cent, financial institutions 0.32 per cent and travel & leisure 0.23 per cent.
On the other hand, food & allied sector posted the highest gain, surging 5.84 per cent despite nine companies faced correction, out of 18.
Of the food & allied issues, Gemeni Sea Food was the week's best performer, posting a gain of 62.10 per cent as investors grabbed its shares following the news of its hefty 125 per cent stock dividend declaration and expansion of business plan.
Apex Foods also gained 10.20 per cent, followed by RD Food with 10.10 per cent, BATBC 9.10 per cent, Fu-Wang Food 5.90 per cent and Fine Food 3.50 per cent.
Another heavyweight telecom sector, which comprised two issues - Grameenphone (GP) and Bangladesh Submarine Cable Company (BSCCL), also gained 4.81 per cent.
Share prices of GP, the largest market cap listed company in the country's capital market, rose 5.0 per cent to close at Tk 445.30 on Thursday at DSE, the last trading session of the week.
The country's leading mobile operator last week disclosed that it recorded Tk 7.0 billion as profit for the third quarter for July-September period of 2017 on the back of a healthy growth in internet subscription and operational efficiency.
The lone-listed mobile operator's earnings per share (EPS) for the July-September quarter stood at Tk 5.16, against Tk 4.78 in the same quarter a year earlier.
However, share price of BSCCL fell 2.0 per cent to close at Tk 109.40 each on Thursday at the premier bourse.
Textile, ceramics, engineering and miscellaneous sectors also gained 0.42 per cent, 0.40 per cent, 0.35 per cent and 0.26 per cent respectively.
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