Stocks return to red amid thin trading

DSEX dips below 4,800-mark again

 

 

 

 

Stocks returned to the red last week that ended Thursday after previous week's sharp gain as worried investors booked some profit amid prolonged political turmoil.

Brokers said that the investors remained concerned over country's macro-economic landscape, hit hard due to the ongoing political unrest.

The week featured five trading sessions as usual. Of them, three sessions lost 86.28 points while two sessions saw 32.79 points gain.

Week-on-week, DSEX, the prime index of the DSE hit below the 4,800-mark once again and ended the week at 4,788.23 points, shedding 53.49 points or 1.10 per cent.

The two other indices also closed lower. The DS30, comprising blue chips index went down by 34.48 points or 1.90 per cent to close at 1,777.87 points. The DSE Shariah Index shed 21.69 points or 1.89 per cent to close at 1,128.29 points.

The port city bourse Chittagong Stock Exchange (CSE) also ended marginally lower with its Selective Categories Index - CSCX - lost 80.68 points or 0.89 per cent to close the week at 8,898.48 points.

Trading at DSE remained dry and the total turnover for the week stood at Tk 13.19 billion against Tk 14.60 billion in the week before.

The daily turnover for the week averaged Tk 2.63 billion, registering a decline of 9.64 per cent over the previous week's average of Tk 2.92 billion.

"Stagnancy in political front and its probable impact on macro-economic landscape put a negative sentiment on overall market," said IDLC Investments, in its weekly market analysis.

Meanwhile, investors were busy on profit-booking, attained from last week's upturn. Hence, no significant fresh fund flowed to the market, keeping overall market-wide participation in a lethargic mood, said the merchant bank.

However, investors were focused on upcoming yearly corporate declarations which finally assisted growing their interest on some specific stocks from bank sector, the merchant bank added.

LankaBangla Securities said: "Investors could not fully avoid the political tension prevailing in the country. That is why they went for sell-off and remained in the sideline to observe market movement".

But still some investors are looking at stocks that are trading at an attractive valuation level, said the stock broker.

International Leasing Securities said that stocks closed lower last week as short-term profit booking attitude from the investors' mounted the sell-off.

Lacklustre trading behaviour from the market participants pushed the board based index of the prime bourse 53.49 points down, it said.

Participation from the investors also remained shaky as they watchful about the micro-economic outlook, it added.

The major sectors reckoned mixed performances last week. Telecommunication posted the highest loss of the week of 4.61 per cent. Cement also registered a steep decline of 4.33 per cent. Power closed 3.05 per cent lower and NBFIs lost 0.29 per cent.

Ahead of annual declaration of banking stocks, the sector gained 1.5 per cent. Pharmaceuticals also registered gain of 0.9 per cent gain. Food and allied sector also gained 2.25 per cent.

The losers took a modest lead over the gainers as out of 318 issues traded, 178 declined, 123 advanced and 17 remained unchanged on the DSE trading floor.

Three listed companies - LankaBangla Finance, Green Delta Insurance, Makson Spinning Mills, and one mutual fund - NCC Bank Mutual Fund-One declared dividend last week.

LankaBangla Finance declared 10 per cent cash and 10 per cent stock, Green Delta Insurance recommended 15 per cent cash and 10 per cent stock, Makson Spinning declared 5 per cent stock dividend while NCC Bank Mutual Fund-One declared 3 per cent cash dividend.

The market capitalisation of the DSE went down by 1.17 per cent as it was Tk 3,248.28 billion on the opening day of the week and it stood at Tk 3,210.42 billion on closing day of the week.

Beximco dominated the week's top turnover chart with shares worth Tk 410.64 million changing hands followed by IFAD Autos, Aamra Technologies, GP and Lafarge Surma Cement.

Bangas was the week's top gainer, posting a rise of 12.91 per cent while Bangladesh Shipping Corporation (BSC) was the week's worst loser, plunging by 13.31 per cent.

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