Stocks break two-week winning spell

Babul Barman | Published: December 12, 2015 00:00:00 | Updated: February 01, 2018 00:00:00

Stocks slipped into the red last week, after remaining upbeat for the two consecutive weeks, as risk-averse investors opted for quick-profit booking, especially on large-cap stocks.
Analysts said the weakness that emerged on the prime bourse was partly due to a heavy sell pressure on large-cap stocks like GP, Lafarge Surma and Titas Gas, which lost 7.0 per cent, 4.65 per cent and 4.30 per cent respectively last week.
"Ripples in investors' sentiment and apparent lack of directions prompted much more market level volatility, last week," said IDLC Investments, a merchant bank, in its weekly market analysis.
Besides, shifts across selective large-cap and micro-cap issues sterilized the market momentum to evolve at intra-day sessions but could not sustained for long, said the merchant bank.
"However, sectoral preference remained almost same as of the last week while investors' switch prolonged for lucrative price hunts, including better fundamentals," the merchant bank said.
The week featured five trading sessions as usual. Of them, first session closed higher while last four edged down with high volatility.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), dipped below the 4,600-mark and settled the week at 4,583.42, shedding 57.62 points or 1.24 per cent.
The two other indices also ended in the red. The DS30 index, comprising blue chips, went down by 31.14 points or 1.76 per cent to finish at 1,741.09. The DSE Shariah Index shed 18.87 points or 1.68 per cent to close the week at 1,105.36.
The port city bourse Chittagong Stock Exchange (CSE) also returned to the red with its Selective Categories Index - CSCX - losing 146.67 points or 1.69 per cent to end at 8,505.05.
Trading activities remained sluggish and total turnover on the premier bourse came down to Tk 21.68 billion against Tk 25.08 billion in the week before. The daily turnover averaged Tk 4.33 billion, which was 14 per cent lower than the previous week's average of Tk 5.02 billion.
Overall activities remained confined on, engineering, pharma and power sectors, where they captured 25 per cent, 15 per cent, 12 per cent respectively of the week's total turnover.
"Investors preferred to book quick gain on their investment over last few week's price surge as they remained uncertain of long term market stability," said International Leasing Securities, a stockbroker, in its weekly analysis.
The activity from the investors, as reflected by the value of average daily market turnover of the week, also plunged as cautious investors decided in stay in the sideline, said the stockbroker.
LankaBangla Securities, a stockbroker, said, "Selling frenzy couldn't let the market move through its resistance. DSEX touched its resistance at 4,656-level and could not break through it on the first day of the week. As a result, the market experienced correction during the last four trading sessions".
"Correction of the stock price of large-cap companies such as Grameen Phone, Lafarge Surma, Titas Gas contributed to the decrease in index," said the stockbroker.
Royal Capital, stockbroker, said in an analysis, "The market experienced sluggishness last week with lower volatility which was supported by sell-pressure of the investors. Some of them are in 'wait-and-see' mood with a hope of price recovery of the bourse"
The investors were also in fear about winding up of two Mutual Funds --- AIMS First Guaranteed Mutual Fund and Grameen Mutual Fund One, which will be delisted at close of business on 31 December, 2015.
The losers took a modest lead over the gainers as out of 324 traded issues, 150 closed lower, 142 higher and 32 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went down by 1.66 per cent as it was Tk 3,200.64 billion on the opening day of the week and it stood at Tk 3,147.38 billion on closing day of the week.
Keya Cosmetics recommended dividend last week. The company recommended 20 per cent stock dividend for the year ended on June 30, 2015. The company also disbursed 20 per cent stock dividend last year.
Quasem Drycells dominated the week's turnover chart with shares of Tk 951.22 million changing hands during the week followed by BSRM Steels Tk 870 million, Square Pharma Tk 766 million, Delta Life Insurance Tk 697 million and Beximco Pharma Tk 675 million.
Hakkani Pulp and Paper was the week's best performer, posting a rise of 26.94 per cent while Far East Knitting and Dyeing Industries was the week's worst loser, plunging by 20.83 per cent.
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