- Dhaka Stock Exchange

Investors focus on small caps amid sluggish trade

dse cse1_71320Stocks declined for two consecutive weeks, with turnover remaining sluggish as most of the investors are yet to adapt themselves to the new trading system.

The week featured four trading sessions instead of five as the market was closed on December 16 on the occasion of Victory Day. Of them, the market lost first three sessions while the last one recovered some points.

Week-on-week, the DSEX, the prime index of the Dhaka Stock Exchange (DSE), fell below the 4,900-mark and ended at 4,856.42 points, shedding 76.61 points or 1.55 per cent.

The two other indices also ended in the red. The DS30, comprising blue chips, lost 30.78 points or 1.69 per cent to close at 1,792.86 points. The DSE Shariah Index shed 10.56 points or 0.91 per cent to close at 1,144.83 points.

The port city bourse Chittagong Stock Exchange (CSE) also ended lower with its Selective Categories Index lost 153.74 points or 1.66 per cent to close the week at 9,102.78 points.

Turnover at the DSE was not remarkable, which amounted to Tk 9.55 or 47.01 per cent lower over the previous week’s turnover of Tk 18.02 billion as the last week saw four trading sessions instead of previous week’s five.

The daily turnover for the week averaged Tk 2.38 billion, registering a decline of 33.76 per cent over the previous week’s average of Tk 3.60 billion.

The investors’ attention was mostly focused on pharma, engineering and textile – the sectors that accounted for 15.1 per cent, 14 per cent and 11.5 per cent of the week’s total turnover respectively.

“Encountering a number of sell-offs, the market remained sluggish, except the last session of the week, when it re-assessed and recouped last few sessions’ losses,” said IDLC Investments in an analysis.

Adapting to new trading platform remained the key challenge of the week for the investors community. Amid uncertainty, volatility ensued, with small-cap stocks taking over gainers board, said the merchant bank.

“Overall, investors remained reluctant to make moves in the market, given trading difficulties and absence of any trend formation,” said the merchant bank.

“Stocks suffered considerable setback due to the inception of new trading system as it endured a bearish week,” said International Leasing Securities.

Large-caps and bank stocks plunged amid 34 per cent decline in average daily turnover compared to the preceding week, it said.

However, several small-caps from various sectors continued to rally and remained at the center of investors’ attention, the International Leasing added.

LankaBangla Securities said among the major sectors, only cement appreciated by 0.43 per cent. All the other sectors closed in the red. Telecommunication lost sharply by 3.37 per cent.

Banks, food and allied went down by 2.43 per cent and 2.32 per cent respectively. Power, pharmaceuticals and NBFIs also retraced 1.32 per cent, 1.08 per cent and 1.08 per cent respectively.

Losers outpaced gainers as out of 314 issues traded, 183 declined, 113 advanced and 18 remained unchanged on the DSE trading floor. “Though losers overtook the gainers during the week, some individual issues showed strength,” said LankaBangla Securities.

The market capitalisation of the DSE went down slightly by 0.65 per cent as it was Tk 3,254.49 billion on the opening day of the week and it stood at Tk 3,233.35 billion on closing day of the week.

Agni Systems Ltd dominated the week’s top turnover chart with shares worth Tk 393.94 million changing hands, followed by Fu-Wang Foods, Western Marine Shipyard, Square Pharma and Summit Alliance Port.

Fu-Wang Foods was also the week’s top gainer, posting a rise of 14.58 per cent while Aziz Pipe was the week’s worst loser, plunging by 21.93 per cent.


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