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The Financial Express
Swasti Lankabangla Swasti Lankabangla

Weekly analysis

Stocks dip for second week

Turnover declines 21pc on prime bourse


| Updated: December 11, 2017 12:27:30


Stocks dip for second week

Stocks plummeted for the second week that ended Thursday as risk-averse investors continued to opt for booking profit on heavyweight banking sector issues.

Market operators said the cautious investors booked profit on large-cap sectors, especially from bank, financial institutions and engineering issues, taking the market into the red zone for the second consecutive weeks.

"Profit booking tendency on heavyweight banking, financial institutions and engineering issues pulled stocks down as the sector-based issues saw bullish trend in recent weeks," said an analyst at a leading brokerage firm.

The heavyweight banking sector faced a significant correction of 3.89 per cent.

Lfe insurance issues declined 1.94 per cent, engineering 1.49 per cent and financial institutions 1.16 per cent.

The banking sector plunged 3.89 per cent as prices of all 30 listed banks closed lower.

ICB Islamic Bank was the week's worst loser with 15.38 per cent fall. Standard Bank tumbled 10.47 per cent, Pubali Bank 10.25 per cent and AB Bank 7.54 per cent.

The week featured five trading sessions as usual. Of them, four sessions drifted lower while one session ticked marginal gain.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 58.63 points or 0.93 per cent to settle at 6,248.

"The continuous fall was triggered by sell pressure of banking sector issues," commented City Bank Capital Resources, a merchant bank, in its weekly market analysis.

"Recent news regarding the bad loan in the banking sectors of the country also sapped the investors' confidence in banking sector stocks," said an analyst at a leading brokerage firm.

The two other indices also drifted lower. The DSE 30 Index comprising blue chips fell 6.06 points or 0.27 per cent to finish at 2,264.

However, the DSE Shariah Index (DSES) managed to close green, advancing 7.92 points or 0.0.57 per cent to close at 1,389.

Chittagong Stock Exchange (CSE) also closed lower with CSE All Share Price Index -- (CAPSI) - shedding 172 points or 0.88 per cent to finish at 19,336.

The Selective Categories Index of the second bourse of the country - CSCX- also lost 105 points or 0.90 per cent to close at 11,696.

EBL Securities, a stockbroker, said, "The investors focused on profit booking on banking issues prior to year-end, as a result, the index tumbled".

According to International Leasing Securities, some investors opted for liquidating their holdings from bank and financial institutions sectors as they remained doubtful regarding the year-end earnings declaration of the sector.

Food, pharmaceutical and telecommunication sectors attracted the investors' attention while some of the investors took position in 'Z' category stocks expecting quick return, the stockbroker said.

Total turnover of the week declined to Tk 30.11 billion on the DSE, which was Tk 38.32 billion in the week before.

The daily turnover averaged Tk 6.02 billion, which was more than 21 per cent lower than the previous week's average of Tk 7.66 billion.

Block trade contributed 1.6 per cent to the total turnover of the week, where stocks like Convertible Bond of BRAC Bank, Olympic Industries, Golden Harvest, First Bangladesh Fixed Income Fund and City Bank dominated the block trade board.

Banking sector kept its dominance over the turnover chart, capturing 20 per cent of the week's total transaction, followed by engineering with 14 per cent and textile 12 per cent.

The market capitalisation of the DSE also fell 0.10 per cent last as it was Tk 4,241 billion at opening day of the week while it came down to Tk 4,237 billion on Thursday.

Out of 337 issues traded, 169 closed lower, 143 ended higher and 25 issues remaining unchanged on the DSE trading floor during the week.

Bangladesh Thai Aluminium topped the week's turnover chart with 31.44 million shares of Tk 998 million changing hands, closely followed by Square Pharmaceuticals with Tk 894 million, Grameenphone Tk 837 million, Brac Bank Tk 799 million and Paramount Textile Tk 739 million.

CAPM BDBL Mutual Fund One was the week's best performer, posting a gain of 20 per cent while ICB Islamic Bank was the week's worst loser, slumping by 15.38 per cent.

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