DSEX dips below 4,700-mark on selling frenzy

Babul Barman | Published: October 17, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Stocks witnessed sharp fall last week that ended Thursday with turnover remaining sluggish as the investors went on panic-driven selling spree.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), dipped below the 4,700-mark to settle the week at three months low to 4,676.63, after slumping 104.73 points or 2.19 per cent.
"The bourse passed nightmare of a week, watching almost unrestrained fall of stock prices wiping off over Tk 66.8 billion of the equity market capitalisation," said IDLC Investments, a merchant bank, in its weekly analysis.
The merchant bank noted that in the backdrop of heightened security risk and consequential cancellation of trips to the country by foreign buyers and tourists, as well as developments surrounding Trans-Pacific Partnership (TPP), investors were fidgety and worried.
Strong sell pressure in two multinational stocks -- Grameenphone and Lafarge Surma Cement-- which capture almost 17 per cent of total market cap of the DSE, hit the market movement for the week, the merchant bank said.
GP and Lafarge lost 6.0 per cent and 10.5 per cent respectively, over the week and dragged the market along with their downfall. "The fall in large caps plagued market sentiment and triggered sale off across all cap classes and sectors," said the merchant bank.
The market witnessed five trading sessions as usual. Of them, three sessions fell sharply while two saw marginal gains.
The DS30 index, comprising blue chips, plunged 49.50 points or 2.73 per cent to finish at 1,766.50. The DSE Shariah Index fell 34.89 points or 3.03 per cent to end the week at 1,114.84.
The port city bourse Chittagong Stock Exchange (CSE) also saw sharp fall with its Selective Categories Index - CSCX - falling 201.5 points or 2.26 per cent to end the week at 8,711.71.
"Stock faltered heavily closing the week below 4,700-mark as selling frenzy continued to mar the investors' confidence," commented LankaBangla Securities, a stockbroker, in its weekly analysis.
"The selling pressure on large cap stocks continued to batter market sentiment while some investors were eyeing on sector specific stocks to take position as the earnings season directed the market movement," said the stockbroker.
"The market fell due mainly to the investors' panic-driven sell-offs also negative for the multinational stocks to fall," said the analysis of Royal Capital.
"The bearish trend is expected to continue for upcoming week with relatively averse investors' participation," said the Royal Capital.
Activities also subdued as buyers refrained from the market participation. The total turnover for the week stood at Tk 19.18 billion which was Tk 18.94 billion in the week before.
The daily turnover averaged Tk 3.83 billion, which was 1.22 per cent lower than the previous week's average of Tk 3.79 billion.
Investors were most active in bank, pharmaceuticals and engineering sectors, where they captured 18 per cent, 14 per cent and 13 per cent respectively of the week's total turnover.
International Leasing Securities, a stockbroker, said the absence of any clear indication regarding the market recovery and future market momentum, investors remained watchful and stayed on the sideline and are waiting to see the forthcoming third quarterly declarations for taking further investment decisions.
All the large cap sectors ended in red. Telecommunications declined by heavy 5.53 per cent. Cement lost 7.21 per cent. NBFIs went down by 4.35 per cent. Power retraced by 2.08 per cent. Food and allied fell 1.38 per cent, pharmaceutical dropped 1.39 per cent while banks slipped marginally by 0.1 per cent.
The losers outpaced gainers as out of 326 issues traded, 253 closed lower, 58 advanced while 15 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went down significantly by 2.06 per cent as it was Tk 3,281.46 billion on the opening day of the week and it stood at Tk 3,213.85 billion on closing day of the week.
Beximco Pharma remained the week's top turnover leader for the second straight week with shares of Tk 1.13 billion changing hands during the week followed by Lafarge Surma Cement, Mozaffar Hossain Spinning Mills, Brac Bank and newly-listed KDS Accessories.
Alltex Industries was the week's best performer, posting a rise of 10.92 per cent while Matin Spinning was the week's worst loser, plunging by 14.07 per cent.
Meanwhile, KDS Accessories started its trading on the last session of the week and showed 329 per cent price hike over the offer price on its debut.
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