Babul Barman
Dhaka stocks tumbled for the two straight weeks with declining turnover value amid falling confidence of the investors and disappointing third quarter earnings report by the listed companies and lack of institutional support.
Market analysts said the investors are likely to be reluctant to inject fresh fund into the secondary market at this moment as dismal earnings report of most banks and non-bank financial institutions pulled their sentiment down.
The subscription of four IPOs (Initial Public Offerings) within this month is also a reason behind the sluggish market trend, said a stock broker.
The DSE witnessed five trading sessions as usual. Among those first four sessions lost 134.36 points, while the last one closed only 3.01 points higher.
Week-on-week, the benchmark general index of the Dhaka Stock Exchange (DGEN) went down by 137.37 points or 3.06 per cent to close at 4,347.64.
The all share price index DSI also went down by 116.96 points or 3.08 per cent to close at 3,675.12. On the contrary, the blue chip index DSE-20 went up to close at 3,492.87 points, gaining 3.52 points or 0.10 per cent.
"Lack of institutional participation and cautious approach of retail investors amid disappointing third quarter earnings led to the decline," said a stock broker.
"Many investors are also planning to invest in IPOs instead of secondary market as three more IPOs are scheduled to open their public subscription this month," he said.
The subscription for Sunlife Insurance IPO is over and three more IPOs -- Argon Denim, Premier Cement and Summit Purbanchal Power Company -- are scheduled to open this month.
"Market lacks individual and institutional buying support although many scrips appear to be much cheaper in the week-long downtrend," commented LankaBangla Securities.
The turnover continued to slump and total turnover value stood at Tk 15.14 billion which was 47.56 per cent higher than last week's total turnover as this week witnessed five trading sessions compared to last week's three session.
Consequently, the average daily turnover went down by 11.46 per cent to stand at Tk 3.03 billion compared to Tk 3.42 billion in the previous week.
Out of 282 issues traded, 50 advanced, 225 declined and seven remained unchanged in the week.
The market capitalisation of the DSE decreased by 2.49 per cent in the week, as it was Tk 2,505.23 billion on the opening day of the week and at the end of the week it stood at Tk 2,442.86 billion.
All the major sectors posted losses in the week. Telecommunications sector went down by 2.87 per cent, while fuel and power sectors fell by 3.43 per cent.
NBFIs lost 4.55 per cent, the most among the major sectors. Meanwhile, banks went down by 3.13 per cent and pharmaceuticals by 2.43 per cent. The highest gainer of the week among all the sectors was jute which gained 9.44 per cent while the worst loser was IT which lost 10.12 per cent.
During the week, four companies--BD Autocars, National Tubes, Eastern Housing and Atlas Bangladesh made the corporate declaration.
United Airways continued to top the week's turnover chart with shares worth Tk 1.77 billion changed hands in the week.
The other turnover leaders were Jamuna Oil, RN Spinning, BSCCL, Unique Hotel and Resorts, Titas Gas, Tallu Spinning, Aamra Technologies, Olympic and Malek Spinning.
Apex Food was the week's highest gainer posting a rise of 26.96 per cent, followed by Monno Jute Stafflers, National Polymer, Apex Spinning, Prime First Mutual Fund, Renwick Jajneswar, Rangpur Foundry, BATBC and Ambee Pharma.
The week's worst losers included Fu-Wang Ceramic, Kohinoor Chemical, DESCO, Meghna Condensed Milk, Midas Financing, Deshbandhu Polymer, Saiham Cotton Mills, Atlas Bangladesh, Aamra Technologies and Tallu Spinning.
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