Stocks break gaining streak

Stocks went down last week, breaking the fourth straight week of gaining streak as the investors went for selling spree amid political turmoil across the country.

The presence of investors was thin on the trading floor almost throughout the week and most of the investors remained reluctant to make fresh investments due to political confrontation across the country.

The week witnessed five trading sessions as usual and market went down four sessions, while one session posted marginal gain.

Week-on-week, the prime index of Dhaka Stock Exchange--DSEX-- went down by 165.21 points or 3.76 per cent from previous week's highest level since its inception on January 28 last.

The DS30 index including blue chips stocks also went down by 40.21 points or 2.60 per cent in the week and closed at 1,503.78 points.

The Chittagong Stock Exchange (CSE) also ended lower last week with its Selective Categories Index losing sharply 317.63 points or 3.69 per cent to close the week at 8,282.65 points.

Investors' participation was comparatively sluggish in the week. The total market turnover for the week stood at Tk 30.82 billion against Tk 38.84 billion in the previous week.

The daily turnover averaged Tk 6.16 billion, down by 11.5 per cent over the previous week's average turnover of Tk 6.97 billion.

"Sudden drop in turnover in last three trading sessions of the week indicates that investors are still staying in the sideline and observing market movement," said LankaBangla Securities in its weekly market analysis, a leading stock broker.

Moreover, investors were more confused about the direction of the market. On the political front, confusion still remains regarding the imminent national election, said the stock broker.

 "Investors turned a bit bearish due to severe clashes that took place in the three-day nationwide blockade enforced by opposition parties," said the stock broker.

Currently, money market is flooded with liquidity. Call money rate in hovering around 6.5 to 7.0 per cent. Credit demand is low as uncertainty prevails over peaceful transition of political power.

But due to political uncertainties, investors are staying sideline observing the market movement, the stock broker added.  

"The last week of November made a depressive end. Negative vibe was prevalent as the week started, and persisted throughout the week," said IDLC Investments.

"Investors' confidence continued to evaporate over political gloom and the investors naturally were rather disappointed since this weeks' correction wiped out the previous weeks' gain entirely," said the merchant bank.

Consequently, investors went back to the sideline causing diminishing turnover in the final sessions of the week. However, healthy turnover in the beginning of the week, kept average turnover floated over Tk 6.0 billion, the merchant bank said.

The losers took a strong lead over the gainers as out of 296 issues traded during the week, 247 declined, 45 advanced and 4 remained unchanged on the premier bourse.

All the major sectors ended in red in the week. Banks lost the most by 5.41 per cent, followed by NBFIs 4.02 per cent and telecommunications 3.41 per cent respectively. Fuel & power and pharmaceuticals retraced 1.64 per cent and 0.85 per cent respectively.

Textile and fuel & power were at the center of activities throughout the week, accounted for 23 per cent and 14 per cent of total turnover resppectively.

The market capitalisation of the DSE went down by 2.67 per cent, as it was Tk 2,707.46 billion at the opening day of the week and it stood at Tk 2,635.13 billion at the closing day of the week.

A total of three listed companies--Jamuna Oil, Bata Shoe and Aftab Automobiles--made corporate declarations during the week. Jamuna Oil declared 90 per cent cash  and 10 per cent stock dividend, Bata Shoe recommended 195 per cent cash (interim) and Aftab Automobiles declared 8 per cent cash and 12 per cent stock dividend.

RN Spinning became the week's top turnover leaders with shares worth Tk 1.08 billion changing hands followed by Generation Next Fashion, Paramount Textile, Delta Life Insurance and Bengal Windsor Thermoplastic.

Central Pharma was the week's top gainer, posting a rise of 22.86 per cent, while Olympic Industries was the week's worst losers, slumping by 31.64 per cent.