Stocks returned to the red last week after gaining sharply in the previous week as majority of investors closely watched the newly introduced trading platform.
The premier bourse Dhaka Stock Exchange (DSE) Thursday launched new automated trading system to ensure smooth share transactions and mitigate some existing problems. The investors tried to adapt to the new trading system.
The week featured all five trading sessions. Of them, two sessions advanced while three others closed in the negative amid choppy trading.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down marginally by 28.82 points or 0.58 per cent to close at 4,933.03 points after gaining 189.29 points in the previous week.
The two other indices also closed in the red. The DS30, comprising blue chips, lost 20.05 points or 1.09 per cent to close at 1,823.64 points. The DSE Shariah Index shed 6.04 points or 0.52 per cent to close at 1,155.39 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended marginally lower, with its Selective Categories Index CSCX losing 53.75 points or 0.57 per cent to close the week at 9,256.52 points.
Participation of investors declined and the total turnover for the week stood at Tk 18.02 billion against Tk 19.77 billion the week before.
The daily turnover for the week averaged Tk 3.60 billion, registering a decline of 8.86 per cent over the previous week's average of Tk 3.95 billion.
The investors' attention was mostly focused on pharma, power and banks - the sectors that accounted for 17 per cent, 16 per cent and 12 per cent of the week's total turnover respectively.
"Absorbing a number of flat sessions, increased level of volatility kept overall market movement sluggish last week," said IDLC Investments, in its weekly market analysis.
The investors were observing newly-introduced trading platform of the DSE. Besides, amplified trading in mid-cap and mini-cap stocks triggered volatility as investors continued searching for lucrative spreads, said the merchant bank.
"Overall, investors remained cautious and are looking for perfect confirmation of trend reversal," said the merchant bank.
With lower participation, the market was slowing down, as investors were re-balancing portfolio, cautiously, the merchant bank said.
Some positive news related to the textile sector, like robust export target of garment products and re-branding of Bangladesh as well as increased remittances and eased current account balance were noteworthy, the merchant bank added.
LankaBangla Securities said: "The benchmark index lost marginally amid cautious trading behavior among investors".
Among the major sectors, telecommunication gained by 2.82 per cent, the most. Small caps were in the buying radar as observed by the top gainers in last week, said the stock broker.
Pharma and textile stocks had the major contribution in the total market turnover last week. Market's trailing P/E stood at 16.03 last week.
On the economic front, inflation continued its fall in November, coming down to 6.21 per cent, and the lowest in 24 months. Export bounced back in November propelled by a pick-up in garment exports. Total export stood at USD 2.42 billion, up 9.5 per cent year-on-year.
The major sectors yielded mixed results last week. Fuel and power lost the most with 3.71 per cent decline. Pharmaceuticals and cement closed 1.57 per cent and 2.18 per cent lower respectively.
Telecommunication gained 2.82 per cent and food and allied gained 2.12 per cent. The financial sectors banks and NBFIs advanced marginally by 0.12 per cent and 0.44 per cent respectively.
Losers outpaced gainers as out of 316 issues traded, 172 declined, 117 advanced and 27 remained unchanged on the DSE trading floor.
Two listed companies-Hamid Fabrics and Sonali Aansh-made corporate declarations last week. Hamid Fabrics declared 10 per cent cash and 10 per cent stock dividend while Sonali Aansh recommended a 10 per cent cash dividend.
Beximco Pharma dominated the week's top turnover chart with shares worth Tk 711.58 million changing hands followed by Hamid Fabrics, Summit Alliance Port, GP and Square Pharma.
Quasem Drycells was also the week's top gainer, posting a rise of 25.04 per cent while newly listed Hamid Fabrics was the week's worst loser, plunging by 21.93 per cent.
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