Weekly sector-wise analysis: Most of the major sectors suffer losses

Telecom nosedives 6.46pc, banking surges 3.0pc

FE Report | Published: August 11, 2018 10:28:11 | Updated: August 13, 2018 10:43:15

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Most of the sectors faced correction last week that ended on Thursday with telecommunication sector sustained a big hit after quarterly earnings declaration.

Of the 19 sectors listed with the Dhaka Stock Exchange (DSE), the market-cap of 14 sectors ended lower while five ended higher, according to weekly analysis of the DSE and LankaBangla Securities.

The heavyweight telecommunication sector, which comprised two issues - Grameenphone (GP) and Bangladesh Submarine Cable Company (BSCCL), was the biggest loser, plunging by 6.46 per cent as the sector heavyweight GP's share fell Tk 25.60 each to close at Tk 363.80.

Brokers said the largest market cap GP's share price plunged following its price adjustment after record date for interim dividend. The record date for interim cash dividend was on August 5.

The board of directors of the company has recommended 125 per cent interim cash dividend out of the audited net profits of the company for the half year ended on June 30, 2018.

The company has also reported earnings per share (EPS) of Tk 8.0 for April-June, 2018 as against Tk 5.87 for April-June, 2017.

The cement sector also lost 2.26 per cent as prices of six cement manufacturers went down, out of seven.

Of the cement issues, Premier Cement posted the highest corerction, shedding 4.50 per cent followed by LafargeHolcim with 3.30 per cent, Aramit Cement 3.30 per cent, MI Cement 1.40 per cent, Meghna Cement 1.10 per cent and Heidelberg Cement 0.90 per cent.

The non-bank financial institutions also lost 1.50 per cent as 14 issues of the sector ended lower, out of 23.

Of the NBFIs issues, National Housing Finance witnessed highest correction of 10.80 per cent, followed by Phoenix Finance with 6.20 per cent, IPDC Finance 4.50 per cent, LankaBangla Finance 3.30 per cent, United Finance 2.80 per cent, Peoples Leasing 1.50 per cent, ICB 1.20 per cent and IDLC Finance 0.30 per cent.

The DSE has decided to review two more listed firms which did not did not pay any dividend in the last five years.

The IT sector also saw 2.30 per cent correction as six companies of the sector ended lower, out of eight.

Of the IT companies, Information Services Network was the worst loser, plunging by 13.10 per cent to close at Tk 19.90 each as the DSE announced to review the company's performance.

The Dhaka bourse last week decided to review 15 listed companies' performances which failed to declare dividend in the last five years.

Among other IT companies, share price of Agni Systems fell 7.0 per cent, Aamra Technologies fell 4.20 per cent, Daffodil Computers 3.20 per cent and BDCOM Online and IT Consultants lost 3.10 per cent each.

On the other hand, banking sector posted the highest gain of 3.0 per cent as prices of 26 banks ended higher, out 30.

"Some of the banks posted good profit in the second quarter, leading investors to channel some of their money into the banking stocks," said a leading broker.

The consolidated EPS of half of the listed banks increased during the January-June 2018 period.

Of the banks, Trust Bank witnessed the highest gain of 14.80 per cent to close at Tk 34.90 each.

It was followed by Jamuna Bank 8.70 per cent, Prime Bank with 6.30 per cent, Brac Bank 6.10 per cent, AB Bank 5.90 per cent, Premier Bank 5.50 per cent, Dhaka Bank 4.90 per cent, Mercantile Bank 4.40 per cent and Uttara Bank 3.60 per cent.

Insurance, travel & leisure, food & allied and power sectors also gained 2.95 per cent, 1.96 per cent, 0.73 per cent and 0.39 per cent respectively.


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