Stock prices go down for fourth straight week

FE Report

Stock prices went down for the fourth straight week on the bourses that ended Monday with turnover shrinking further as cautions investors refraineds from fresh investments, fearing further fall of share prices.

The market witnessed a shorten week with only two trading sessions as the bourses remain closed from August 6 till 11th Aug'13 on the occasion of Eid-ul-Fitr. Among two trading sessions, one declined sharply while remaining one gained moderately.

In this shortened week, the new bench-mark index of the Dhaka Stock Exchange, DSEX shed 19.78 points or 0.51 per cent to close the week at 3,891.98 points. The blue-chip index, DS30 0.61 per cent also lost and ended the week at 1,468.06 points.

The port city bourse --- the Chittagong Stock Exchange (CSE) also ended marginally lower last week with the Selective Category Index of the CSE lost 35.06 points or 0.46 per cent to close at 7,668.44 points.

Trading activities remained sluggish ahead of Eid holidays as the total market turnover for the week amounted to Tk 4.2 billion, which was 73.6 per cent lower over the last week's turnover value.

The last week featured all five trading sessions. The daily average turnover value stood at Tk 2.1 billion, which was 34.0 per cent lower than the last week's average value of Tk 3.2 billion.

"Most of the investors were reluctant to take fresh position ahead of Eid closure and fear of further fall after Eid festival. The dismal earnings performance of most of the companies also discouraged them," IDLC Investments said.

Faded optimism in line with turmoil in participation fueled by cashing out mania ahead of Eid-ul-Fitr further. As a result, declining tone stretched to fourth consecutive week, said the merchant bank

"Market continued to see declining capitalization before the Eid closure. Political uncertainty may have caused the investors to hold back their investments decisions," stated LankaBangla Securities.

"Financial sector companies continued to take battering as the dismal earnings performance of these companies discouraged investors," the stock broker said.

"Investors' continued to follow 'wait-and-see' strategy and seemed to be more cautious in their trading activities ahead of Eid holidays, keeping the participation sluggish for the fourth week,' said an analyst.

All the major sectors ended in red with telecommunications losing the most as it retraced 2.42 per cent over the previous week.

NBFI was the second biggest loser with a 2.05 per cent loss. Fuel and power and pharmaceuticals were down by 1.18 per cent and 0.95 per cent respectively. Banks was almost flat with no significant movement.

The market capitalisation of the DSE went down slightly by 0.80 per cent as it was Tk 2,493.97 billion in the opening day and at the end week it stood at Tk 2,473.89 billion.

Olympic Industries Ltd became the week's top turnover chart with shares worth Tk 360.49 million changing hands followed by BSCCL, Meghna Petroleum, Padma Oil.

Prime Finance First Mutual Fund was the week's highest gainer posting a rise of 10.2 per cent while Familytex (BD) was the worst losers, plunging by 13.3 per cent it's of category change.
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