Stocks down for 2nd straight week amid volatility

Amid volatile market sentiment, stocks edged lower for the second consecutive week that ended Thursday with turnover dropping slightly as investors remained watchful.

The week featured all five trading sessions. Among them, the market gained only two sessions while three sessions closed lower amid volatile trading almost throughout the week.

Week-on-week, the prime index of Dhaka Stock Exchange (DSE) --- DSEX --- went down by 50.24 points or 1.06 per cent to close the week at 4,699.63 points.

The DS30, comprising blue chips went down by 3.79 points or 0.22 per cent to close at 1,690.12 points. However, the Shariah Index (DSES) closed positive with gaining 8.94 points or 0.89 per cent to close at 1,011.35 points.

The port city bourse --- the Chittagong Stock Exchange (CSE) also went down last week with its Selective Categories Index - CSCX lost 79.28 points or 0.85 per cent to close the week at 9,207.75 points.

The total market turnover for the week stood at Tk 23.10 billion on DSE which was Tk 25.35 billion in the previous week.

Consequently, the average daily turnover came down to Tk 4.62 billion, registering 8.89 per cent decline over the previous week's average of Tk 5.07 billion.

"Surge in market volatility kept investors much more cautious, this week," commented IDLC Investments, in its weekly market analysis.

In addition, re-balancing of portfolio ahead of corporate declarations was prominent and kept market sentiment vibrant, said the merchant bank.

However, Large Cap scrips got investors' special attention. Resultantly, participation hovered centering on heavy weighted scrips, the merchant bank added.

During the week, DSEX lost 50 points and turnover averaged to Tk 4.62 billion. Week started with a hit on indices. Resultantly, market remained detracted with strong shed offs in financial sectors' scrips, putting DSEX below 4,700 points.

"Market level volatility prompted investors' cautious stance. However, they were continuously focusing on and positioning in Large Cap scrips."

"The main bourse of the country has experienced a mini fall at the beginning trading session of the week followed by flat movement, showing participants' indecision about the trend of the market," said LankaBangla Securities.

Throughout the week, market hanged around 4,695-level closing at around 4,700 points. Average turnover of the market has decreased by 8.89 per cent during the week demonstrating investors' lack of intention to sell off at lower price, the stock broker said.

"Some companies of the banking sector have declared robust earnings growth which may bring back the confidence of the participants towards the market and set the direction."

Money market was highly liquid during the week and weighted average call money rate has come down to 6.71 per cent which was 6.86 per cent one week earlier, the stock broker added.

The losers took a strong lead over the gainers as out of 299 issues traded during the week, 219 declined, 65 advanced and 15 issues remained unchanged on the DSE floor.

This week, Micro Cap and Mid Cap performed well. Besides, Pharmaceuticals and Fuel & Power had leading positions in turnover, capturing 12.92 per cent and 12.60 per cent, respectively of week's total value.

Among the major sectors, pharmaceuticals posted the highest gain of 4.57 per cent during the week, owing to the high trading volume of Square Pharmaceuticals that gained 5.30 per cent alone, followed by telecommunications 0.70 per cent.

Food & allied lost the most 5.30 per cent in the week, making banks 3.25 per cent, fuel & power 0.86 per cent and NBFIs 0.08 per cent.

A total of 15 listed companies - United Leasing, Bank Asia, Union Capital, Prime Bank, Southeast Bank, Lafarge Surma Cement, DBBL, Uttara Finance, Al-Arafah Islami Bank, BRAC Bank, Pubali Bank, UCBL, EBL, Prime Finance & Investments and Marico Bangladesh were made corporate declaration in the week.

The market capitalisation of the DSE went down slightly by 0.48 per cent as it was Tk 2,923.12 billion at the opening day of the week and it stood at Tk 2,909.06 billion in closing session of the week.

Square Pharma dominated the week's top turnover chart with shares worth Tk 1.42 billion changing hands during the week followed by Olympic Industries, GrameenPhone, BSCCL and Lafarge Surma Cement.

Rupali Life Insurance was the week's top gainer, posting a rise of 23.02 per cent while Reliance Insurance was the week's worst loser, slumping by 16.60 per cent.