- Dhaka Stock Exchange

DSEX dips below 4,900-mark amid weak sentiment

Dhaka-stock-exchangeThe bearish spell continued for the third consecutive weeks with key index of the major bourse dipping below 4,900-mark as investors went for selling frenzy amid weak market sentiment.

The week featured all five trading sessions. Of them, only one session saw marginal gain while four sessions saw modest decline.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) came down below the ‘psychological’ threshold of 4,900-point and closed the week at 4,899.61 points, shedding 84.85 points or 1.70 per cent.

The two other indices also ended lower. The DS30, comprising blue chips, index lost 45.46 points or 2.44 per cent to close at 1,814.69 points. The DSE Shariah Index dropped 28.73 points or 2.45 per cent to close at 1,145.82 points.

The port city bourse Chittagong Stock Exchange (CSE) also ended lower for the third consecutive weeks with its Selective Categories Index-CSCX – went down by 117.12 points or 1.24 per cent to close the week at 9,254.00 points.

The market’s participation remained sluggish and the total turnover for the week declined to Tk 31.35 billion against Tk 37.77 billion the week before.

The daily turnover for the week averaged Tk 6.27 billion, registering a decline of 17 per cent over the previous week’s average of Tk 7.55 billion.

The investors’ attention remained mostly concentrated on power, engineering and pharmaceuticals – the three sectors accounting for 56 per cent of the week’s total value.

“Market continued to slip amid shrinking turnover and weakening investor confidence,” said IDLC Investments, in its weekly analysis.

Newly listed small cap stocks were luring the investors, small caps exuberance is difficult to justify given some of the stocks might have largely parted from fundamental value, said the merchant bank.

A couple of new declarations from the fuel and power sector with positive earnings growth also hit the market, which was welcomed by the investors, the merchant bank said.

LankaBangla Securities said: “After passing the week mostly under selling pressure, market showed lack of participation in early trading and closed in the red”.

“Investors remained cautious as market is yet to get any direction,” the stock broker added.

In macro-economic front, news of increasing non-performing loan numbers hit the market which might require more provisioning the next quarter, it said.

International Leasing Securities said that the market continued a bumpy ride throughout the week’s trading as the investors were yet to make up their mind regarding the market’s turnaround.

“Pessimism among the investors regarding the entire market situation dragged the market’s turnover,” said the International Leasing.

All the major sectors yield negative returns in the week except banks, witnessing marginal appreciation of 0.44 per cent.

Telecommunication registered the highest loss of the week, going down by 4.49 per cent. NBFIs and pharmaceuticals also down 1.54 per cent and 1.15 per cent respectively. Fuel and power and food and allied went down by 0.46 per cent and 0.36 per cent respectively.

The losers took a strong lead over the gainers as out of 316 issues traded, 224 declined, 79 advanced and 13 remained unchanged on the DSE trading floor last week.

Ten listed companies – Envoy Textile, Mehgna Petroleum, Khan Brothers, Gemini Sea Food, Jamuna Oil, Kohinoor Chemical, Orion Infusion, Dacca Dyeing, Rahima Food and Aftab Automobiles– made corporate declaration last week.

The market capitalisation of the DSE went down by 1.65 per cent as it was Tk 3,302.69 billion on the opening day of the week and it stood at Tk 3,248.82 billion on closing day of the week.

Jamuna Oil Company dominated the week’s top turnover chart with shares worth Tk 2.09 billion changing hands followed by Western Marine Shipyard, DESCO, Khan Brothers and BEDL.

JMI Syringe and Medical Devices was also the week’s top gainer, posting a rise of 25.68 per cent while Orion Infusion was the week’s worst loser, plunging by 29.56 per cent.

A new issue — Khan Brothers PP Woven Bag Industries made a flying trade debut last week. Listed with an offer value of Tk 10 each, its share price zoomed up by 666 per cent to close at Tk 76.6 on its debut day.


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