Stocks extend losing streak with lacklustre trading

FE Report | Published: September 01, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

Stocks suffered losses for the second straight session Monday with poor turnover as most of the investors were reluctant to make fresh investments and observed the market movement.
Analysts said the investors were worried over possible impact of higher burden on the industrial segment due to hike in gas and electricity tariff while maiden verdict of 1996 stock market scam created mixed reaction among the investors.
"Downbeat continued as economic prospects remain unappealing in the short-term, deteriorated by the fact of higher fuel costs," said IDLC Investments, a merchant bank, in an analysis.
"As manufacturing margins came under threat with fuel price hike, depression persisted among the investors as uptrend revival seemed deferred," said the merchant bank.
Investors started their day with sale mood as they feared further fall in the market. At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 22.30 points or 0.46 per cent to finish at 4,768.66.
The two other indices also closed in the red. The DS30 index, comprising blue chips, lost 8.42 points or 0.45 per cent to settle at 1,826.97. The DSE Shariah Index (DSES) shed 5.31 points or 0.44 per cent to end at 1,176.48.
Turnover remained sluggish and the total turnover amounted to Tk 3.51 billion, which was 0.23 per cent higher than the previous day's Tk 3.50 billion.
The participants were mostly active on pharma, power and food and allied - the sectors accounted for 18 per cent, 15 per cent and 14 per cent respectively of the day's total turnover.
LankaBangla Securities, a stockbroker, said, "Turnover activity remained lacklustre as investors are remaining in the sideline to observe market movement".
The stockbroker noted that the investors are eyeing on imminent Q3 corporate earnings, which is expected to determine next level of direction of the broad market.
"Investors went for sell-offs from the beginning of the session, which sustained throughout the session," adding that fear of further plunge due to the bearish market outlook has pushed the selling spree amongst the investor," said International Leasing Securities, a stockbroker.
A major portion of the investors also endured in the sidelined amid 'wait-and-see' stance. Recent price hike of power and gas might have created negative impact in the mind of the investors, said the stockbroker.
"The maiden verdict of the 1996 share market scam also might have created mixed reaction among the investors," said the stockbroker.
"Active investors kept themselves reluctant in the sideline and took the cautious stance while small investors remained busy in bumpy trading," said MTB Capital, a merchant bank in an analysis.
Most of major sectors witnessed price correction. Food and allied advanced a significant 2.28 per cent followed by pharma 0.26 per cent.
Fuel and power lost 1.02 per cent followed by banks 0.82 per cent, NBFIs 0.81 per cent. Cement closed 0.74 per cent lower and telecommunication retraced 0.47 per cent.
The losers took a strong lead over the gainers as out of 316 issues traded, 205 closed lower, 72 higher and 39 remained unchanged on the DSE trading floor.
Activities decreased in the major bourse where volume and trade were down 4.72 per cent and 11.38 per cent respectively. A total number of 0.080 million trades were executed with trading volume of 81.68 million securities.
The market capitalisation of the DSE stood at Tk 3,345.23 billion against Tk 3,355.49 billion in the previous session.
Square Pharmaceuticals dominated the day's turnover chart with shares of Tk 288.59 million changing hands followed by Islami Bank, Lafarge Surma Cement, Titas Gas and FAR Chemicals.
Northern Jute Manufacturing was the day's best performer, posting a rise of 8.74 per cent while National Bank was the day's worst loser, plunging by 11.20 per cent following its price adjustment after record date.
The port city bourse Chittagong Stock Exchange (CSE) also closed lower with thin trading activities with its Selective Categories Index - CSCX - lost 50.66 points to end at 8,881.66.
Losers beat gainers 170 to 37, with 35 issues remained unchanged on the port city bourse that traded 7.22 million shares and mutual fund units with a value of Tk 236.23 million.
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