16 sectors stumble, three close higher

Dhaka,  Tue,  30 May 2017
Published : 20 May 2017, 21:19:18
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Analysis

16 sectors stumble, three close higher

NBFIs, bank, textile, power face major setback
FE Report

Almost all the sectors faced major correction on the Dhaka bourse last week that ended Thursday as worried investors continued their selling spree ahead of the budget for the next fiscal year.

Of the 19 sectors on the prime bourse, except corporate bonds, debentures and treasury bonds, the market capitalisation of 16 sectors ended lower while three managed to close green, according to weekly analysis of DSE and the LankaBangla Securities.

Brokers said cautious investors continued their sell offs to avoid further losses while some adopted 'wait-and-see' approach ahead of the budget announcement and the holy month of Ramadan.

Among the major sectors, non-bank financial institutions (NBFIs), cement, textile, bank, telecommunication and, fuel and power sectors took a big jolt.

The NBFIs witnessed the highest loss of 4.25 per cent, followed by cement with 2.80 per cent, textile 2.70 per cent, banks 2.36 per cent, telecommunication 1.48 per cent and, fuel and power 1.27 per cent.

The financial institutions posted the highest loss despite most of those showed positive performance in the January-March period of 2017 compared to the same period in the previous year.

Out of 23 listed NBFIs, 21 have so far declared their Q1 (un-audited) financial reports till last week.  Of them, consolidated earnings per share (EPS) of 15 NBFIs rose while 6 declined in January-March period of 2017 compared to the same period a year ago.

Of the financial institutions issues, share prices of 21 declined with Fareast Finance & Investment was the week's worst loser, slumping by 25.9  per cent, followed by First Finance with 18.40 per cent, BD Finance 15.20 per cent, International Leasing 15 per cent, United Finance 10.80 per cent.

Phoenix Finance, Premier Leasing, IPDC Finance, FAS Finance and LankaBangla Finance also lost 9.60 per cent, 9.0 per cent, 8.70 per cent 8.60 per cent, and 8.20 per cent respectively.

The heavyweight bank sector also lost 2.36 per cent as 17 out 30 listed banks closed lower.

Of the banks, prices of Exim Bank witnessed highest loss of 20.60 per cent, followed by Rupali Bank with 12.30 per cent, National Bank 7.90 per cent, Mercantile Bank 6.20 per cent, UCB 4.20 per cent, Uttara Bank 4.20 per cent, Islami Bank 4.0 per cent and ONE Bank 3.30 per cent.

"Bank shares kept falling amid rising classified loans coupled with concern over amendment to Bank Companies Act 1991 and its impact on the banking sector," said a stockbroker.

The heavyweight telecommunication sector, which comprised two issues only, Grameenphone (GP) and Bangladesh Submarine Cable Company (BSCCL), also fell 1.48 per cent.

GP, the largest market cap listed company in the country's stock exchanges, fell 1.0 per cent to close at Tk 332.10 each on Thursday at DSE. The market cap of BSCCL also fell 1.0 per cent to close at Tk 117.50 each on Thursday.

The cement sector eroded 2.80 per cent as five issues of the sector closed lower, out of seven listed cement companies.

Of the cement issues, the multinational Lafarge Surma Cement lost 4.30 per cent alone, followed by MI Cement with 2.30 per cent, Meghna Cement 0.80 per cent, Premier Cement 0.70 per cent and Heidelberg Cement 0.50 per cent.

The textile sector also faced 2.70 per cent correction last week, as 34 issues of the sector closed in the red, out of 47.

Among the textile issues, Pacific Denims posted the highest correction of 11 per cent, followed by Regent Textile with 9.0 per cent, C&A Textile 7.0 per cent, Al-Haj Textile 7.0 per cent, CMC Kamal 6.0 per cent, RN Spinning 6.0 per cent, Argon Denims 5.0 per cent, Dragon Sweater 5.0 per cent, Fareast Knitting and Dyeing 5.0 per cent 5.0 per cent and Generation Next Fashion 5.0 per cent.

The fuel and power sector also fell 1.27 per cent as 10 issues of the sector closed lower, out of 18.

Of the fuel and power issues, Baraka Power was the worst performer, losing 6.50 per cent, followed by Shahjibazar Power with 5.10 per cent, GBB Power 5.0 per cent, DESCO 3.90 per cent, KPCL 3.60 per cent, Power Grid 2.40 per cent and Titas Gas 1.80 per cent.

Insurance sector also lost 3.80 per cent, followed by services and real estate with 2.07 per cent, travel and leisure 1.88 per cent, miscellaneous 1.70 per cent,  ceramics 0.81 per cent, pharmaceuticals 0.47 per cent, mutual fund 0.35 per cent, IT 0.31 per cent, engineering 0.25 per cent and food and allied 0.04 per cent.

On the other hand, only three sectors managed to close green with jute sector posting the highest gain of 20.14 per cent, followed by paper and printing with 1.0 per cent and tannery 0.58 per cent.

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