Investors remain cautious

FE Report

Stocks ended flat into the red Thursday amid choppy trading with turnover remained unchanged as investors followed cautious stance ahead of budget announcement.

The market started with a positive note, but could not sustain. Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 4,430.47 points, shedding only 0.50 points or 0.01 per cent.

The other two indices also closed into red. The DS30, comprising blue chips lost 3.50 points or 0.21 per cent to close at 1,609.96 points. The DSE Shariah Index (DSES) also lost 0.45 points or 0.04 per cent to close at 992.82 points.

Turnover remained largely unchanged as investors were lagging of fresh fund re-injection. The total turnover at DSE stood at Tk 3.23 billion against Tk 3.21 billion in the previous session.

"Despite a gaining start, market struggled in first half, only to surrender to downbeat in the later half. Amid market level volatility, demand & supply force shuffled one another and remained stronger," commented IDLC Investments, in its daily market analysis.

"The market finished flat after witnessing choppy index movement early in the session," said International Leasing Securities.

The market gained 15 points within first 15 minutes only see all the gains wipped away just as quickly, said the International Leasing.

 Besides, having two positive sessions of total 53 points gain, a natural profit booking took place, today. Resultantly, the bourse ended flat, closing DSEX at 4,430 points, said the merchant bank.

Large Cap centric positioning continued and top five scrips captured 28 per cent of the day's turnover. Cement sector once again topped the liquidity chart with about 20 per cent contribution to total market turnover. The cement sector also gained 2.58 per cent.

The losers took a modest lead over the gainers as out of 293 issues traded, 126 declined, 113 advanced and 54 closed unchanged on the DSE floor.

Most of major sectors suffered market setback. Food & allied posted a staggering 2.95 per cent gain - mainly owing to steep price appreciation of heavy-weight BATBC which advanced 4.6 per cent.  

The other major sectors ended in red. Telecommunication lost the most with 1.25 per cent decline - followed by NBFIs and Banks which closed 0.69 per cent and 0.45 per cent lower respectively. Fuel & power and pharmaceuticals also went down by 0.43 per cent and 0.06 per cent.

Lafarge Surma Cement was the top turnover leader with shares worth Tk 461.88 million changing hands followed by Square Pharma, Prime Bank, Heidelberg cement and Mercantile Bank.

Wata Chemicals was the day's highest gainer; posting a rise of 9.92 per cent while Ambee Pharma was the day's worst losers, slumping by 9.42 per cent.

The port city bourse -- Chittagong Stock Exchange (CSE) also closed marginally lower with its Selective Categories Index - CSCX -- lost 23.81 points to close at 8,468.99 points.

Losers beat gainers 117 to 72, with 21 issues remaining unchanged at the port city bourse that traded 4.91 million shares and mutual fund units, turnover value of Tk 198.71 million.