Stocks extend losing spell for two weeks

Babul Barman | Published: April 23, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

Stocks extended their losing spell for the two straight weeks that ended Thursday as cautious investors' selling spree continued amid mixed trend of earnings and dividend declarations.
Market insiders said investors were mostly cautious as the government is yet to extend the banks' capital market exposure adjustment deadline which is scheduled to expire in July 2016, while some reacted negatively on mixed trend of earning declarations by some listed companies.
"Earnings and dividend declaration by several listed companies failed to match the investors' expectation, resulting further price correction of issues and closing the benchmark index to move towards the near term support level of 4,300 at the end of the week," said an analyst.
The week featured five trading sessions as usual. Of them, four sessions closed lower, while one session saw marginal gain.
SEX, the prime index of the Dhaka Stock Exchange (DSE), came down below the 4,400-mark and settled the week at 4,340.34, slumping by 68.30 points or 1.55 per cent over the previous week.
The two other indices also closed lower. The DS30 index, comprising blue chips, fell 17.20 points or 1.02 per cent to finish at 1,666.15. The DSE Shariah Index lost 8.06 points or 0.76 per cent to close at 1,057.93.
The port city bourse Chittagong Stock Exchange (CSE) also closed lower for the second week with its Selective Categories Index, CSCX, falling 116.06 points or 1.40 per cent to finish at 8,130.54.
The total turnover for the week stood at Tk 19.33 billion against previous week's Tk 17.47 billion, as the last week saw five trading sessions instead of previous week's four.
The daily turnover averaged Tk 3.87 billion, registering a decline of 11.50 per cent over the previous week's average of Tk 4.37 billion.
Overall activities remained confined on, fuel and power, pharma and engineering sectors, where they captured 23 per cent, 22 per cent and 11 per cent respectively of the week's total turnover.
"The week passed on downward trend as selling spree was dominant among the investors," said LankaBangla Securities, a stockbroker, in its weekly analysis.
International Leasing Securities, a stockbroker, said, "Investors remained watchful ahead of earnings declaration from listed companies as well as the national budget announcement for the FY 2016-17".
The stockbroker noted that lack of any policy support in the gloomy market scenario and delay in the announcement of extending the deadline for the adjustment of bank's capital market exposure limit has put the investors' nerve in wariness.
Sheltech Brokerage, said, "Following last falling week, the investors remained cautious amid dilemma in extension of bank's capital market exposure timeframe, which is scheduled to expire on July 21, this year".
The losers took a strong lead over the gainers as out of 328 issues traded, 227 closed lower, 84 higher and 17 remained unchanged on the DSE trading floor during the week.
A total of 15 listed companies -- Brac Bank, Dhaka Bank, Islami Bank, Jamuna Bank, Bay Leasing and Investments, Beximco, Beximco Pharmaceuticals, Shinepukur Ceramics, Dragon Sweater and Spinning, Republic Insurance, Pioneer Insurance, International Leasing and Financial Services, Rangpur Dairy and Food Products, Eastland Insurance, and Beximco Synthetics-- recommended dividend last week.
The market capitalisation of the DSE remained unchanged as it was Tk 3,085.18 billion on the opening day of the week and it stood at Tk 3,085.07 billion on closing day of the week.
MJL Bangladesh dominated the week's turnover chart on DSE with 10.42 million shares worth Tk 1.07 billion changing hands, followed by ACI Tk 744 million, Keya Cosmetics Tk 561 million, Jamuna Oil Tk 558 million and Doreen Power Tk 551 million.
Monno Stafflers was the week's best performer, posting a gain of 29.77 per cent, while Standard Bank was the week's worst loser, slumping by 18.18 per cent.
A new issue - Bangladesh National Insurance Company-- made a flying trade debut last day of the week. The non-life insurer's share price soared 83 per cent to close at Tk 18.30 on Thursday, from its issue price of Tk 10 each.
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