Stocks see marginal correction

Stocks saw marginal correction Monday with turnover improved further as investors traded cautiously amid ongoing political developments.

The presence of investors on the trading floor was thin because of the ongoing blockade enforced by BNP-led 18-party alliance.

The market started with strong bullishness, but couldn't sustain it peace till the end of the day amid cautious trading, eventually ended into negative at closed.

At the end of the session, the DSEX ended at 4,289.82 points, shedding 12.74 points or 0.29 per cent from previous session. The DS30 index, including blue chips also lost 5.43 points or 0.36 per cent to close the session at 1,495.99 points.

However, the turnover remained encouraging as the total turnover on the DSE amounted to Tk 6.47 billion, up by 23 per cent from the previous session's value of Tk 5.26 billion.

Market analysts observed that overall market sentiment was volatile as investors seem confused in their trading activities.

"Some low-profile companies turned into overpriced and dominated the day's top gainer chart while some big shares seem lucrative for investment,' said an analyst.

"Domestic economy is being grilled with continuous strikes and political violence. But Bangladesh keeps showing its character," said LankaBangla Securities, a leading stock broker.

According to latest available data in November 2013, export grew 26.26 per cent compared to November in 2012, said the stock broker.

"This is very encouraging as investors were thinking export growth would be low single digit due to all theses political clashes and strikes," said the stock broker.

Latest inflation data shows that in November inflation rose to 7.15 per cent from 7.03 per cent in October. This rise was due to higher food prices as strikes pushed transportation cost up. But it is still under control as government targeted inflation rate is 7.0 per cent.

"Economic indicators seem to be favourable, but investors are still not confident in testing the depth of the market with their both feet due to political uncertainty," said the stock broker.

"The bearish vibe was heavily influenced by the dire strait of economic activities in the country with no solid promise of turnaround," said IDLC Investments, a leading merchant bank.  

However, entrance of contrarian investors' boosted turnover by 23 per cent, which absorbed much of the sell pressure, helping stocks to stay steady, said the investments banker.

A few scrips dominated investors' mindset, and remained at the center of increased activities, as observed in top 10 active stocks' capturing over Tk 2.0 billion turnover, the merchant bank added.

Of the issues traded, 132 advanced, 130 declined and 29 remained unchanged on the DSE floor.

Despite the negative movement of the market, NBFIs and pharmaceuticals ended in green with gaining 1.53 per cent and 0.37 per cent respectively.

The other major sectors retraced - telecommunications, banks and fuel & power lost 1.24 per cent, 0.61 per cent and 0.44 per cent respectively.

Activities also increased 25.20 per cent and 16.40 per cent in the prime bourse respectively. A total of 0.144 million trades were executed with 155.14 million shares and mutual fund units were trading volume.

The market capitalization of the DSE stood at Tk 2,664.18 billion against Tk 2,669.56 billion in the previous session.

Generation Next Fashion dominated the top turnover chart with shares worth Tk 333.66 million changing hands followed by Delta Life Insurance, Golden Harvest Agro Industries, Paramount Textile and Central Pharma.

Rahima Food was the day's highest gainer, posting a rise of 9.84 per cent while Libra Infusion was the day's worst losers, slumping by 7.81 per cent.

The Chittagong Stock Exchange (CSE) also ended slightly lower, with its Selective Categories Index - CSCX lost 16.59 points to close at 8,413.90 points.