The third quarter corporate earnings of the listed companies started rolling out and many showed poor performance, which might dampen investors’ sentiment, said an analyst.
The week featured five trading sessions as usual and only one session managed to close positive while four sessions saw steep decline.
Market opened the week losing 2.06 per cent, the steepest single-day loss in 14 months and remained down in the following session. While the third session turned around, the last two slipped back into the red.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) dipped below 5,200-mark, shedding 131.73 points or 2.49 per cent to close the week at 5,154.11 points.
The two other indices also saw slid. The DS30, comprising blue chips index lost 54.12 points or 2.71 per cent to close at 1,943.68 points. The DSE Shariah Index dropped 26.22 points or 2.11 per cent to close at 1,216.24 points.
The port city bourse Chittagong Stock Exchange (CSE) plummeted after seven weeks with its Selective Categories Index-CSCX – declined 234.07 points or 2.36 per cent to close at 9,677.86 points.
Trading at DSE remained sluggish almost throughout the week. The total turnover for the week stood at Tk 32.73 billion which was Tk 48.10 billion in the week before.
The daily turnover for the week averaged Tk 6.54 billion, registering a decline of 31.95 per cent over the previous week’s average Tk 9.62 billion.
Throughout the week, investors remained active in power, engineering and pharma – the sectors that accounted for 22 per cent, 13 per cent and 12 per cent respectively of the week’s total turnover.
“Market remained volatile throughout the week, amid shrinking turnover and weakening investors’ confidence,” said IDLC Investments in its weekly analysis.
“Large swings in the index panicked investors while slower turnover figures drastically cut down liquidity”.
However, scrip-wise movement continued as investors largely concentrated to selective stocks, said the merchant bank.
“Upcoming third quarter declaration motivated investors to re-balance their portfolio in line with changing expectations,” said the merchant bank.
“Rapid correction of the market during the week has made the investors cautious about the market,” said LankaBangla Securities.
July-September period’s corporate earnings have started to come out, which will influence the market’s direction, said the stock broker.
“The investors are eyeing upcoming corporate earnings to get the market direction,” the stock broker added.
International Leasing Securities said: “The market’s gloomy vibe existed throughout the week as the investors showed mixed reactions towards the quarterly earnings reports of the listed companies”.
Among the major sectors, only NBFIs and food and allied sectors posted gains of 1.15 per cent and 0.46 per cent respectively.
Banks lost the most during the week of 3.05 per cent. Pharmaceuticals and fuel and power went down by 1.10 per cent and 1.72 per cent respectively. Telecommunication also edged down by 0.88 per cent.
The losers took a strong lead over the gainers as out of 311 issues traded, 251 declined, 55 advanced and 5 remained unchanged on DSE floor during the week.
Seven listed companies – RSRM Steels, Barakatullah Electro Dynamics, Tung Hai Knitting, Popular Life Insurance, Fu-Wang Food, Aamra Technologies and Rahim Textile recommended dividend last week.
The market capitalisation of the DSE went down drastically by 2.38 per cent as it was Tk 3,467.62 billion on the opening day of the week and it stood at Tk 3,384.92 billion on closing day of the week.
MJL BD dominated the week’s top turnover chart with shares worth Tk 1.47 billion changing hands followed by Titas Gas, Square Pharma, KPCL and RSRM Steels.
Shahjibazar Power Company was the week’s top gainer, posting a rise of 46.19 per cent following its trading resumption after 10-week of suspension while EBL NRB Mutual Fund was the week’s worst loser, slumping by 20 per cent.