Selling frenzy grips investors

Babul Barman | Published: November 14, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Stocks witnessed yet another bearish week that ended Thursday, extending the losing spell for the six weeks in a row.
The week featured five trading sessions as usual and the frustrated investors were on selling frenzy in the first four sessions while the last one gave some support following some news like extension on time limit of adjustment on banks' investments and meeting with regulators.
"Lack of investment stories, fear of sale pressure from banks to bring down capital market exposure to allow level and consistent targeted violence took a major toll on investors' sentiment last week," IDLC Investments said in its weekly analysis.
"With investors' confidence almost eroded, market entered in a free fall zone, unwinding returns generated in last six months, but the last session of the week harboured some support for the market but wasn't sufficient to recoup all the loss, the merchant bank said.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 68.58 points or 1.52 per cent to settle the week at 4,433.58.
The two other indices also ended lower. The DS30 index, comprising blue chips, plunged 22.28 points or 1.30 per cent to finish at 1,689.08. The DSE Shariah Index shed 17.01 points or 1.57 per cent to end the week at 1,067.47.
The port city bourse Chittagong Stock Exchange (CSE) also saw steep decline with its Selective Categories Index - CSCX - slumping by 135.59 points or 1.62 per cent to end the week at 8,232.27.
As sentiment remained shaky, the total turnover for the week came down to Tk 14.90 billion which was Tk 15.04 billion in the week before.
The daily turnover averaged Tk 2.98 billion, which was 1.0 per cent lower than that of the previous week's average of Tk 3.0 billion.
Overall activities remained confined on fuel and power, engineering and pharma sectors, where they captured 21 per cent, 20 per cent, 13 per cent respectively of the week's total turnover.
The largest market cap issue from power sector, Titas Gas passed a volatile week with strong negative tilt. Poor dividend recommendation and Q1 earnings declaration, caused by reduction in distribution margin of the company made the share price dropped, the IDLC Investments said.
However, news of appeal against the decision by the company jacked the price up in the last trading session. But, the stock ultimately lost 15.1 per cent over the week, said the merchant bank.
International Leasing Securities, a stockbroker, said, "The capital market experienced notable setback last week amid shaky investors' confidence".
The stockbroker noted that the flagship index of the Dhaka bourse dragged below 4,400-mark as panicky investors rushed for selling of shares. However, the closing session of the bourse witnessed an endeavor to revive amid position taking.
Royal Capital said, "The market continued value erosion with comparatively higher risk. The broad index DSEX dropped by 1.52 per cent alongside with 1.03 per cent volatility.
Turnover dropped 1.0 per cent with 68.58 points fall in DSEX better describes investors were in sell mode. However, the trend of the market for the next week depends on some large cap stocks movement, said the stockbroker.
The market started with panic sell-off, however a contentious downward movement in securities value that ended up with a bullish pattern, it further said.
LankaBangla Securities said, "The market passed another tensed week, though the last trading day showed some improvement by lifting up the benchmark by 62 points with higher participation".
Pharma, engineering and fuel and power were the sector movers last week, said the stockbroker.
The market breadth remained negative as out of 325 traded issues, 245 closed lower, 67 higher and 13 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went down by 1.99 per cent as it was Tk 3,146.60 billion on the opening day of the week and it stood at Tk 3,084.07 billion on closing day of the week.
Meanwhile, nine listed companies - Meghna Petroleum, Padma Oil, Eastern Lubricant, Titas Gas, ICB, Dacca Dyeing, Atlas Bangladesh, Pharma Aids and Orion Infusion - recommended dividends during the week.
Titas Gas dominated the week's turnover chart with shares of Tk 1.30 billion changing hands during the week followed by IFAD Autos, Square Pharma, Saif Powertec and United Airways.
Aramit was the week's best performer, posting a rise of 16.81 per cent while Aman Feed was the week's worst loser, plunging by 22.04 per cent.
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