Stocks extend losses for sixth day

Dhaka,  Wed,  20 September 2017
Published : 12 Apr 2017, 21:44:09
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Stocks extend losses for sixth day

Transaction hits fresh 2-month low on DSE
Stocks extend losses for sixth day
FE Report


Stocks witnessed yet another sluggish trading session Wednesday, extending the losing spell for the sixth day in a row, as risk-averse investors continued their selling spree.

Analysts said the market extended losses in continuation of previous five days' correction as investors continued their selling binge, especially from bank, financial institutions, food and allied and pharmaceutical issues.

The market started with a negative note and the downward trend continued till end of the session with no sign of reversal.

Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), finished at 5,646.38, losing 37.08 points or 0.65 per cent over the previous day.

DSEX lost about 131 points in the past six consecutive sessions after reaching record high of 5,777 points on April 4 since its introduction on January 28, 2013.

AT Capital Partners, an asset management company, said, "DSEX fell steadily throughout the session with few minor spikes and ultimately lost 37 points, which is the highest single-day correction since February 2017".

The two other indices also ended lower. The DS30 index, comprising blue chips, fell 14.09 points or 0.66 per cent to finish at 2,093.60. The DSE Shariah Index (DSES) lost 1.85 points or 0.14 per cent to close at 1,298.55.

Turnover, the another important indicator for the market, came down to Tk 7.14 billion, which was 4.43 per cent lower than the previous day's Tk 7.82 billion.

It was the lowest single-day transaction since February 7, this year when the turnover was Tk 6.20 billion.

"Some investors preferred sideline, observing the market movement, which lessened total market activities," said a stockbroker.

Textile sector emerged as turnover leader, capturing 23 per cent of the day's total turnover value, followed by bank 18 per cent and pharmaceuticals 12 per cent.

IDLC Investments, a merchant bank, said, "Despite market wide correction, textile sector rewarded the investors with 1.0 per cent gain. Within the sector, Rahim Textile, Regent Textile, Paramount Textile did particularly well, advancing 7.60 per cent, 5.0 per cent and 4.20 per cent respectively".

International Leasing Securities, a stockbroker, said, "The stock market witnessed a nosedive in its benchmark index extending the losing streak for the sixth session in a row amidst lower participation from the investors".

The stockbroker noted that the shaky investors opted to liquidate their holding of shares to avoid from further losses where some adopted "wait-and-see" approach on the ongoing market movement.

"Selling of shares mostly from bank, financial institution, food and pharma sectors contributed to the fall in indices," said stockbroker.

All the large-cap sectors witnessed correction except engineering sector which advanced 0.23 per cent.

Financial institutions posted the highest loss of 1.94 per cent, closely followed by banks 1.64 per cent, food and allied 0.62 per cent, pharmaceuticals 0.37 per cent, telecommunication 0.21 per cent and fuel and power 0.08 per cent.

The losers took a strong lead over the gainers as out of 327 issues traded, 170 closed lower, 120 closed higher and 37 remained unchanged on the DSE trading floor.

LankaBangla Finance dominated the DSE turnover chart for the third straight session with 5.03 million shares of Tk 317 million changing hands, followed by Evince Textile, IFIC Bank, Brac Bank and Beximco Pharmaceuticals.

Rahim Textile was the day's best performer, posting 7.57 per cent rise, while Eastern Bank was the worst loser, slumping by 11.88 per cent following its price adjustment after record date.

The port city bourse, the Chittagong Stock Exchange (CSE), also ended lower with its Selective Categories Index - CSCX - shedding 20.31 points to settle at 10,608.

Losers beat gainers as 115 issues closed lower, 87 closed higher and 35 remained unchanged on the CSE.

The port city bourse traded 20.31 million shares and mutual fund units' worth Tk 473 million in turnover.

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