Most sectors face erosion on selling binge

Dhaka,  Tue,  26 September 2017
Published : 19 Aug 2017, 23:18:57
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Sector-wise analysis

Most sectors face erosion on selling binge

16 sectors close into red, three manage to stay green
FE Report

Majority number of sectors closed into the red last week that ended Thursday as cautious investor booked short-term profit on sector-specific stocks following the recent price surge.

Of the 19 sectors listed on the prime bourse, except corporate bonds, debenture and treasury bonds, the market cap of 16 sectors faced correction while three sectors managed to stay green, according to weekly analysis of the Dhaka Stock Exchange (DSE) and the LankaBangla Securities.

Analysts said the investors sold shares to bag profit, especially from cement, textile, non-bank financial institutions, IT, engineering, pharmaceuticals, banks and food & allied sectors, which contributed to fall of indices.

Among the major sectors, cement witnessed the highest correction of 2.44 per cent, closely followed by textile with 2.43 per cent, IT sector 2.22 per cent, NBFI 0.81 per cent, and engineering 0.66 per cent.

Travel & leisure also lost 2.41 per cent, followed by services & real estate with 1.96 per cent, jute 1.84 per cent, ceramics 1.32 per cent, mutual fund 1.17 per cent, insurance 1.14 per cent, miscellaneous 0.93 per cent, pharmaceuticals 0.61 per cent, tannery 0.12 per cent, food & allied 0.10 per cent and banks 0.05 per cent.

The cement sector faced 2.44 per cent correction as prices of five cement makers closed lower, out of seven listed companies.

Of the cement issues, multinational Lafarge Surma Cement posted the highest loss of 3.20 per cent, followed by Confidence Cement with 2.50 per cent, MI Cement 2.10 per cent, Premier Cement 1.90 per cent and Heidelberg Cement 1.0 per cent.

The textile sector also lost 2.43 per cent as 38 issues of the sector faced erosion, out of 48, with 13 issues faced more than 4.0 per cent correction.

Of the textile issues, Dulamia Cotton witnessed the highest correction of 9.0 per cent, followed by Makson Spinning Mills and Regent Textiles lost 7.0 per cent each.

C&A Textiles, Fortune Shoes, Generation Next Fashions also lost 6.0 per cent each while Saiham Cotton, Nurani Dyeing and Delta Spinners fell 5.0 per cent each.

The IT sector registered a 2.22 per cent decline as six issues of the sector closed in the red, out of seven.

Of the IT companies, share price of Daffodil Computers fell 3.70 per cent, followed by Aamra Technologies with 3.10 per cent, Intech 2.20 per cent, Agni Systems 1.80 per cent, BDCOM Online 1.78 per cent and IT Consultants 1.50 per cent.

The NBFI sector also lost 0.81 per cent as 11 issues of the sector faced erosion, out of 18.

Of the NBFI issues, Islamic Finance posted the highest correction of 5.10 per cent, followed by FAS Finance with 4.80 per cent, Peoples Leasing 4.60 per cent, Uttara Finance 4.10 per cent, LankaBangla Finance 2.50 per cent, IDLC Finance 2.40 per cent and state-run ICB 1.10 per cent.

On the other hand, telecommunication, paper & printing and fuel & power gained 2.87 per cent, 1.27 per cent and 0.05 per cent respectively.

The heavyweight telecom sector, which comprised two issues - Grameenphone (GP) and Bangladesh Submarine Cable Company (BSCCL), posted the highest gain of 2.87 per cent.

Share prices of GP, the largest market cap listed company in the country's capital market, soared 2.94 per cent to close at Tk 392 each on Thursday at DSE, the last trading session of the week.

However, share price of BSCCL fell 1.99 per cent to close at Tk 117.70 each on Thursday at the premier bourse.

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