The Financial Express

Weekly analysis

Stocks keep falling for fourth straight week

Average daily turnover hits 6-month low

FE Report | Published: December 23, 2017 10:24:24 | Updated: December 26, 2017 11:38:29

Stocks keep falling for fourth straight week

Stocks witnessed yet another bearish week, extending the losing streak for the four weeks in a row that ended Thursday, as ongoing pessimism kept investors mostly inactive.

Dealers said the ongoing pessimism coupled with lack of direction prompted retail investors to sell stocks while institutional investors mostly adopted 'wait-and-see' strategy ahead of year-closing, taking the core index below 6,200-mark.

"The correction phase continued as wobbly investors persisted their sell-offs to realise year-ending profits," said an analyst at a leading brokerage firm.

The week featured five trading sessions as usual. Of them, three sessions closed lower while two sessions posted marginal gain.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 47.23 points or 0.76 per cent to settle the week at 6,182.

EBL Securities, a stockbroker, said, "The market participants remained watchful ahead of year-end corporate declaration. Furthermore, liquidity shortage in the market was apparent which drove the market turnover to plummet further".

The two other indices also closed lower. The DSE 30 Index comprising blue chips fell 16 points or 0.71 per cent to finish at 2,231. The DSE Shariah Index (DSES) lost 10 points or 0.73 per cent to close at 1,366.

"Sluggish market trend amid extremely low turnover led the index to behave speculatively throughout the week," commented Sheltech Brokerage, in its weekly analysis.

The port city bourse Chittagong Stock Exchange (CSE) also closed lower with CSE All Share Price Index -- (CAPSI) - fell 151 points or 0.78 per cent to finish at 19,123.

The Selective Categories Index of the port city bourse -- CSCX, also lost 90 points or 0.77 per cent to close at 11,558.

"The investors opted to liquidate their holdings in textile, fuel & power, financial institution, telecom and bank sectors through the week in anticipation of further fall which led the indices to close in red," commented International Leasing Securities, in its weekly market analysis.

However, some of the optimistic investors took position on lucrative price levels in general insurance, life insurance and engineering sector stocks, the stockbroker said.

Bearish sentiment was also reflected on the business activities as total turnover for the week came down to Tk 21.38 billion on the DSE, which was Tk 21.78 billion in the week before.

The daily turnover averaged Tk 4.28 billion, which was more than 1.80 per cent lower than the previous week's average of Tk 4.36 billion.

It was the lowest daily average turnover in the last six months since July, 2017.

Banking sector kept its dominance over the turnover chart, grabbing 22 per cent of the week's total transaction, followed by textile with 14 per cent and engineering 13 per cent.

The market capitalisation of the DSE also fell 0.61 per cent as it was Tk 4,206 billion at opening day of the week while it came down to Tk 4,180 billion Thursday.

The losers took a strong lead over the losers as out of 337 issues traded, 218 closed lower, 93 closed higher and 26 issues remained unchanged on the DSE trading floor last week.

Grameenphone (GP) topped the week's turnover chart with 1.46 million shares worth Tk 681 million changing hands, closely followed by Square Pharmaceuticals with Tk 639 million, National Tubes Tk 608 million, Alif Manufacturing Company Tk 573 million and Shahjalal Islami Bank Tk 515 million.

Rupali Life Insurance Company was the week's best performer, posting a gain of 17.22 per cent while Dulamia Cotton Mills was the week's worst loser, slumping by 14.29 per cent.


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