- Dhaka Stock Exchange

Stocks post marginal gain as fear of fall haunts investors

Dhaka-stock-exchangeStocks posted a marginal gain last week after previous week’s significant correction as investors proceeded meticulously amid mixed corporate earnings declaration.

The week mostly displayed investors’ reaction to quarterly earnings, dividend disclosures and macroeconomic phenomenon, said a merchant banker.

He said that quarterly earnings of most of the listed companies became available that offered investors room to re-balance their position further.

Out of five sessions, two advanced. The market opened the week losing 0.82 per cent. The second session turned around by 0.88 per cent. The next two sessions retraced by 0.55 per cent and 0.38 per cent respectively. The closing session of the week rose 1.24 per cent.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up slightly by 19.13 points or 0.37 per cent to close the week at 5,173.23 points. DSEX managed to tread toward positive territory due to last trading day’s 63.80 points rally.

The two other indices also saw marginal gain. The DS30, comprising blue chips, index gained 5.80 points or 0.30 per cent to close at 1,949.48 points. The DSE Shariah Index advanced 3.80 points or 0.31 per cent to close at 1,220.04 points.

The port city bourse Chittagong Stock Exchange (CSE) also saw marginal gain with its Selective Categories Index-CSCX -rose 23.41 points or 0.24 per cent to close at 9,701.21 points.

Fresh funds injection slowed down last week with increased level of volatility. The total turnover for the week stood at Tk 27.67 billion against Tk 32.73 billion the week before.

The daily turnover for the week averaged Tk 5.53 billion, registering a decline of 15.45 per cent over the previous week’s average of Tk 6.54 billion. The week posted lowest average turnover in the last seven weeks.

Throughout the week, the investors remained active in power, pharma and banks – the sectors that accounted for 23 per cent, 13 per cent and 12 per cent respectively of the week’s total turnover.

“Earnings disclosures and dynamic trading pattern highlighted last week’s market movements,” said IDLC Investments in its weekly analysis.

Mixed market scenario was observed due to investors’ cautious re-balancing of portfolio ahead of corporate announcements, said the merchant bank.

“Fear of further fall condensed amid investors and as an aftermath favourable earnings could not encourage investors much to return in the market,” the merchant bank added.

LankaBangla Securities said: “The market experienced volatility throughout the week as most of the listed companies have published their Q3 (Jul-Sept 2014) earnings report.”

“The investors responded to quarterly earnings declarations of several stocks last week. Particular issues from fuel and power and textile sectors grabbed the investors’ special attention,” noted International Leasing Securities.

Fuel and power stocks dominated the week registering 3.15 per cent gain in market cap. Fuel and power companies showed on an average meager growth in earnings in Q3 2014. Banks observed mixed performance.

The major sectors yield mix performance last week. Banks and NBFIs gained 0.68 per cent and 0.50 per cent respectively.

Pharmaceuticals saw 0.72 per cent correction. Food and allied and telecommunication edged 0.12 per cent and 0.03 per cent down.

The losers took a lead over the gainers as out of 314 issues traded, 150 declined, 146 advanced and 18 remained unchanged on DSE floor during the week.

Some 34 listed companies made corporate declaration last week.

The market capitalisation of the DSE went up slightly by 0.41 per cent as it was Tk 3,384.92 billion on the opening day of the week and it stood at Tk 3,398.76 billion on closing day of the week.

GrameenPhone (GP) dominated the week’s top turnover chart with shares worth Tk 1.29 billion changing hands followed by MJL BD, Titas Gas, Square Pharma and Khulna Power Company Ltd.

Shahjibazar Power Company was the week’s top gainer for the second consecutive week, posting a rise of 59.66 per cent while Popular Life Insurance was the week’s worst loser, slumping by 27.44 per cent.


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