Investors reluctant to make fresh investments in stocks

FE Report

Dhaka and Chittagong stocks extended their losing streak for sixth running session Tuesday as retail investors traded cautiously amid lack of institutional support and gloomy earnings figure of financial sector.

The DGEN plunged 189.42 points in the last six running session after the festival vacation while turnover remained steady around Tk 3.0 billion.

Analysts said the market continued its losing streak as investors confidence continued to deteriorate amid lack of institutional support and poor third quarter earnings report.

The DGEN was up by 35 points within the first one hour upon resumption of day's trading and rest of the session it went down amid see-saw and eventually ended 8 points lower.

The benchmark general index of the Dhaka Stock Exchange (DSE) went down by 8.15 points or 0.18 per cent to close at 4,385.55.

The broader All Shares Price Index (DSI) slipped 6.98 points or 0.18 per cent to 3,706.75. The DSE-20 Index comprising blue chips also lost 5.16 points or 0.15 per cent to close at 3,432.84.

The CSE Selective Category Index (CSCX) dropped 31.89 points to close at 8,519.15. The CSE All Shares Price Index (CASPI) plunged 46.64 points to 13,380.42 while CSE-30 Index closed 28.81 points higher to close at 11,383.59.

A merchant banker said that the investors were reluctant to make fresh investments amid dismal earnings reports and lack of institutional participations.

"The disappointing third quarter earnings report of the listed companies, especially banks and non-banks continued to weigh on market sentiment and made the investors somewhat worried," he said.

Many investors are also observing the market situation and planning to invest in IPOs, as four initial public offerings are scheduled to open their public subscription this month, he added.

"Market lacks individual and institutional buying support. Although many scrips appear to be much cheaper," commented LankaBangla Securities, in its daily market analysis.

"The session ended flat with no major change of ongoing sentiment as investors preferred 'safe harbor' and 'cautious' movement," stated IDLC Investments.

Turnover value on the DSE, however, improved to Tk 3.44 billion, up by 11.32 per cent from previous session's Tk 3.09 billion. Turnover on CSE dropped to Tk 378.95 million against Tk 392.64 million in the previous session.

Out of 274 issues traded on DSE, 103 advanced, 157 declined and 14 remained unchanged.

Among the major sectors, banks gained 0.82 per cent, the highest gainer while telecommunications gained 0.02 per cent.

NBFIs lost 1.85 per cent, followed by pharmaceuticals 0.40 per cent and fuel and power 0.02 per cent.

A total of 92.74 million shares changed hands on the day against 76.39 million in the previous session. The trade deals also increased to 85,435 against Monday's 83,621.

The market capitalisation of the DSE came down to Tk 2,462.97 billion against Tk 2,465.76 billion in the previous session.

United Airways continued to dominate the top turnover chart for several weeks with shares worth Tk 435.78 million changed hands.

The other turnover leaders were Jamuna Oil, AIMS First Mutual Fund, Malek Spinning, RN Spinning, Padma Oil, Unique Hotel and Resorts, BSSCL, Delta Spinners and Meghna Petroleum.

Apex Foods was the day's highest gainer, posting a rise of 9.96 per cent followed by AIMS First Mutual Fund, Monno Stafflers, Eastern Lubricant, Prime First Mutual Fund, Pubali Bank, Reliance One, Apex Spinning, Padma Oil and Trust Bank First Mutual Fund.

The day's worst losers included Kohinoor Chemicals, Meghna Condensed Milk, Mithun Knitting, Orion Infusion, Atlas Bangladesh, Delta Spinners, Eastern Housing, Bangas, Aziz Pipes and Samata Leather.
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