Stocks snap 3-week winning streak

Dhaka,  Tue,  19 September 2017
Published : 16 Jun 2017, 22:26:21
Weekly stockmarket review

Stocks snap 3-week winning streak

Average daily turnover drops 17pc on DSE
Babul Barman

Stocks slipped into the red last week that ended Thursday, snapping a three-week winning streak as some investors sold shares ahead of upcoming Eid festival.

Analysts said the market faced mild correction as investors preferred to book quick-gain on their investment over the recent price surge while some were refraining from making fresh investment just ahead of Eid festival.

"As only five trading sessions are left before Eid vacation, many retail investors were busy for pulling money out of the market by selling their stocks, especially for Eid shopping, taking the market in the negative territory," said an analyst at a leading brokerage firm.

Stocks snap 3-week winning streak

The week witnessed five trading sessions as usual. Of them, first two sessions faced correction while last three managed to edge higher.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 7.42 points or 0.51 per cent to settle at 5,468.

"The market faced some correction as the upcoming Eid festival kept most of the investors watchful," commented EBL Securities, a stockbroker, in its weekly analysis.

The two other indices also closed marginally lower. The DS30 index, comprising blue chips, also fell 5.73 points or 0.28 per cent to close at 2031. The DSE Shariah Index lost 6.42 points or 0.51 per cent to close at 1,262.

The port city bourse, Chittagong Stock Exchange (CSE), also finished lower with its Selective Categories Index, CSCX, losing 31 points or 0.30 per cent to settle at 10,249.

The total turnover for the week stood at Tk 23.17 billion, registering a decline of 16.6 per cent over the previous week's Tk 27.80 billion.

The daily turnover averaged at Tk 4.63 billion, which was 16.6 per cent lower than the previous week's average of Tk 5.56 billion.

Textile sector emerged as turnover leader, contributing 19 per cent of the week's total turnover value, followed by pharmaceuticals 15 per cent and bank 14 per cent.

International Leasing Securities, a stockbroker said, "Stocks returned to the red last week snapping a three week gaining streak amid reduced participation of the investors".

The stockbroker noted that the risk-averse investors continued their sell offs to avoid further loss while some adopted 'wait-and-see' approach ahead of Eid festival.

"Selling of shares mostly from cement, financial institution, fuel & power, engineering and telecom sectors contributed to the fall in indices during the week," said the stockbroker.

The large-cap sectors showed mostly negative performance last week. The non-bank financial institutions posted the highest loss of 1.23 per cent, followed by fuel & power with 0.97 per cent, engineering 0.50 per cent, telecommunication 0.49 per cent, food & allied 0.15 per cent and pharmaceuticals 0.14 per cent.

Only bank and textile gained 0.20 per cent and 0.06 per cent respectively.

The losers took a modest lead over the gainers as out of 333 issues traded, 163 closed lower, 139 closed higher and 31 remained unchanged on the DSE trading floor.

Two listed companies - Popular Life Insurance Company and Lafarge Surma Cement recommended dividend last week.

Popular Life Insurance recommended 40 per cent cash dividend while Lafarge Surma Cement recommended 5.0 per cent interim cash dividend.

The total market cap of the DSE also fell 0.34 per cent last week as it was Tk 3,719 billion on the opening day of the week, while stood at Tk 3,706 billion on closing day of the week.

Paramount Textile topped the week's turnover chart with about 29.31 million shares of Tk 1.06 billion changing hands, followed by BD Finance Tk 661 million, LankaBangla Finance Tk 541 million, Beximco Pharma Tk 519 million and MJL Bangladesh Tk 509 million.

Fine Foods was the week's highest gainer, posting a 14.18 per cent rise, while Purabi General Insurance was the worst loser, losing 10.17 per cent.
Editor : A.H.M Moazzem Hossain
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