Stocks closed in the red last week that ended Thursday, extending the losing spell for the three weeks in a row as major economic updates and financial disclosures dominated the market movement.
Analysts said that earnings driven movements dominated the market as a good number of listed companies made their quarterly earning disclosures during the week and investors reacted to corporate disclosures.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) last week took a set of decisions to form separate trading board for small capitalized companies where qualified investors will be only allowed to trade shares, which created mixed reaction among the investors.
The week featured five trading sessions as usual. Of them, three sessions closed lower while two saw marginal gain.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 2.47 points or 0.05 per cent to settle at 4,571.12.
However, the two other indices managed to close in green. The DS30 index, comprising blue chips, advanced 13.57 points or 0.78 per cent to finish at 1,742.73. The DSE Shariah Index gained 5.72 points or 0.52 per cent to close at 1,108.42.
The port city bourse Chittagong Stock Exchange (CSE) also slipped into the red for thee weeks with its Selective Categories Index, CSCX, falling 16.46 points or 0.19 per cent to settle at 8,549.82.
The total turnover for the week also came down to Tk 20.57 billion which was Tk 21.52 billion in the week before.
The daily turnover averaged Tk 4.11 billion, which was 4.42 per cent lower than the previous week's average of Tk 4.30 billion.
Overall activities remained confined on, pharma, engineering and textile sectors, where they captured 17 per cent, 14 per cent, 13 per cent respectively of the week's total turnover.
"Major economic updates dominated the market movement, while investors were mostly in selling mood amid lack of market direction," said LankaBangla Securities, a stockbroker, in its weekly analysis.
Among the major news of the week, the current account surplus was $1.06 billion in July-November, which was $582 million in the same period last fiscal year, said the stockbroker, quoting the central bank data.
On the industry front, the government is set to revive the option of reduced corporate tax rate for the garment sector to help exporters upgrade factories and boost investments, said the stockbroker.
IDLC Investment, a merchant bank, said, "Profit booking tactics on investors end were observed at the beginning of the week. However, opportunistic investors came forward in the market later on, taking the advantage of depressed issues prices".
"Earnings driven movements were observed throughout the week, as investors reacted to corporate disclosures," said the merchant bank.
The merchant bank noted that some macroeconomic updates caught the limelight during the week, as private sector credit growth hit three years high at 14.2 per cent year-on-year in December 2015 and final GDP growth rate estimation of Bangladesh reached eight year high at 6.6 per cent in last fiscal year.
On the other hand, remittance was reported to decline by 7.3 per cent year-on-year in January 2016, said the merchant bank, quoting newspapers reports.
Among the cap classes, mini caps faced the selling pressure most, while mid caps attracted the investors the most, said the merchant bank.
"Favourable earnings declarations from corporations lured the investors to jump for buoyancy in the mid two sessions, but shaky confidence among the market participants regarding capital market outlook triggered short-term profit booking," said International Leasing Securities, a stockbroker, in an analysis.
"The participation from the investors also remained poor as watchfulness lingered." said the stockbroker.
Royal Capital, a stockbroker, said, "Investors were in selling mood and some of them were in 'wait-and-see' mood with some future expectations".
"Return to risk ratio tracked with worse market performance per unit of risk level. The market growth improved in compared to last week," said the Royal Capital, in its weekly analysis.
Meanwhile, RAK Ceramic recommended 25 per cent cash dividend for the year ended on December 31, 2015. In 2014, the company also distributed 25 per cent cash dividend.
The losers took a strong lead over the gainers as out of 330 issues traded, 221 closed lower, 94 higher and 15 issues remained unchanged on the DSE trading floor during the week.
The market capitalisation of the DSE also fell by 0.14 per cent as it was Tk 3,170.36 billion on the opening day of the week and it stood at Tk 3,165.42 billion on closing day of the week.
Square Pharmaceuticals dominated the week's turnover chart with 3.20 million shares worth Tk 842 million changing hands followed by City Bank, Beximco Pharma, Appollo Ispat and IT Consultants.
Libra Infusion was the week's best performer, posting a rise of 34.39 per cent while IT Consultants was the week's worst loser, slumping by 22.29 per cent.
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