- Dhaka Stock Exchange

Stocks undergo rough ride

Dhaka-stock-exchangeStocks edged lower for the second straight week, with key index of the prime bourse dipping below 5,000-mark as investors followed ‘wait-and-see’ approach.

The week featured all five trading sessions. Of them, three sessions saw negative trend while two sessions saw upward trend.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) came down below the 5,000-mark and closed the week at 4,984.46 points, shedding 40.64 points or 0.81 per cent.

The two other indices also saw marginal fall. The DS30, comprising blue chips, index lost 6.83 points or 0.37 per cent to close at 1,860.15 points. The DSE Shariah Index dropped 5.76 points or 0.49 per cent to close at 1,174.55 points.

The port city bourse Chittagong Stock Exchange (CSE) also saw marginal decline last week with its Selective Categories Index-CSCX – went down by 71.69 points or 0.75 per cent to close the week at 9,371.12 points.

The week’s total turnover improved significantly as the week witnessed all five trading sessions instead of previous week’s four. The total turnover for the week stood at Tk 37.77 billion against Tk 27.77 billion the week before.

The daily turnover for the week averaged Tk 7.55 billion, registering an increase of 8.80 per cent over the previous week’s average of Tk 6.94 billion.

The investors’ attention was mostly focused on engineering, power and pharma – the sectors that accounted for 20.4 per cent, 19.6 per cent and 15.9 per cent respectively of the week’s total value.

“The stock market encountered a bumpy ride throughout the week’s trading as the investors were yet to make up their mind regarding the market’s turnaround,” said International Leasing Securities in an analysis.

Large-cap stocks including multinational companies from major sectors plummeting in the earlier sessions in the week.

However, the DSEX merely shrugged off its negative outlook with a couple of vibrant mid-week sessions in which small-cap stocks rallied and restored some confidence amongst the investors, even though the week ended with a pessimistic vibe, it said.

LankaBangla Scurrilities said: “Market got some footing during the week though benchmark index lost slightly,”

Some of the companies’ encouraging earnings, which were published during the week, might have lured investors from sideline, said the stock broker.

“Despite clear downward direction, large positive swings were observed, which couldn’t fade the bearish trend,” said IDLC Investments.

Micro and mini cap stocks performed relatively better, while large cap stocks slipped, said the merchant bank.

Among the sectors, top gaining sectors of the week were IT Sector 9.07 per cent, Miscellaneous 1.10 per cent, food and allied 0.77 per cent and travel and leisure 0.68 per cent.

Conversely, top losing sectors were service and real estate 5.87 per cent, tannery 2.77 per cent, bank 1.97 per cent and life insurance 1.85 per cent.

Losers outpaced gainers as out of 314 issues traded, 198 declined, 97 advanced and 19 remained unchanged on DSE floor last week.

Eleven listed companies – Samorita Hospital, National Polymer, Prime Life Insurance, Atlas Bangladesh, Olympic Industries, Padma Oil, Eastern Lubricants, Western Marine Shipyard, Tallu Spinning, Mithun Knitting and Pharma Aids made corporate declaration last week.

The market capitalisation of the DSE went down slightly by 0.60 per cent as it was Tk 3,322.52 billion on the opening day of the week and it stood at Tk 3,302.69 billion on closing day of the week.

The new issue — Western Marine Shipyard dominated the week’s top turnover chart for the second consecutive week with shares worth Tk 2.29 billion changing hands followed by Keya Cosmetics, BEDL, DESCO and Jamuna Oil.

National Polymer was also the week’s top gainer, posting a rise of 45.31 per cent while Tallu Spinning was the week’s worst loser, plunging by 27.95 per cent.


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