Weekly market review
Stocks extend losing streak for three consecutive weeks
Average daily turnover jumps 16pc on DSE
Stocks extended the losing streak for three straight weeks to Thursday as both institutional and individual investors preferred liquidating some of their stakes for cash at the end of the March quarter.
The DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down 8.51 points or 0.14 per cent to 6,206.08. The DSEX shed around 54 points in the past three weeks.
Of the four trading days this week, the market remained closed on Sunday on the occasion of Independence Day. The first two days suffered losses while the last two recovered some losses but failed to offset the early losses.
Regulatory efforts to ease some rules for the capital market intermediaries, so that they can boost the market, also failed to create any impact in the market as they kept holding back from making fresh bets due to the confidence crisis, market insiders said.
Investors have long been hooked on selective stocks while strong fundamental shares are stuck at floor prices, which experts suggest, is a major barrier to bringing stability to the market.
The market index ended in the negative territory for three consecutive weeks as apprehensive investors continued to go on a selling binge of major sectors' stocks, said a stockbroker.
In the absence of a clear indication regarding the market's momentum, investors' confidence remained shaky, and they preferred to hold more cash positions rather than take long-term positions in equities, he said.
"The stock market ended the week with a negative stance amid quarter-ending sell-off from the investors," said International Leasing Securities, in its weekly analysis.
However, the investors preferred to take a long position on the last day of the week based on the news of approving the draft bill of the Bank Company Act by the cabinet, said the stockbroker.
As per the proposed amendment, all corporate bonds and debentures have been excluded from the banks' investment portfolio components which will play a catalyst for the development of the bond market and create more room for banks to invest in the secondary market, according to International Leasing Securities.
EBL Securities, another stockbroker said, during the week, the key index hit a one-month low, as investors preferred partial liquidation of their holdings and remained on the sidelines due to the market's prolonged volatility and liquidity shortage.
However, investors were able to recover some of their losses in the last two sessions as significant corrections made some selective issues lucrative to make some short-term gains again, it said.
The week's total turnover stood at Tk 16.39 billion, down from Tk 17.62 billion the week before as the last week saw four trading days. And the daily average turnover rose 16.30 per cent to Tk 4.10 billion.
Most of the traded issues remained stuck at the floor price. Of the 368 issues traded, 91 advanced, 40 declined and 237 issues remained unchanged on the DSE.
Major sectors posted mixed performances. General insurance booked the highest gain of 0.32 per cent, followed by life insurance, food, engineering and telecom. Pharmaceuticals experienced the highest loss of 0.44 per cent followed by power with 0.06 per cent.
The food sector dominated the turnover chart, grabbing almost 16 per cent of the week's total turnover, followed by IT (14 per cent) and travel & leisure (12.4 per cent).
Unique Hotel & Resort became the week's turnover leader with shares worth Tk 1.25 billion changing hands, followed by Eastern Housing (Tk 1.09 billion), Genex Infosys (Tk 742 million), Gemini Sea Food (Tk 738 million) and Sea Pearl beach Resort (Tk 697 million).
Legacy Footwear was the week's top gainer for the two consecutive weeks, soaring 32.38 per cent further while Shyampur Sugar Mills was the worst loser, shedding 9.95 per cent.
Two other indices of the DSE also edged lower. The DS30 Index, comprising blue-chip companies, lost 8.58 points to 2,209 and the DSES Index shed 3.92 points to finish at 1,349.
The Chittagong Stock Exchange (CSE) also closed lower with the CSE All Share Price Index (CASPI) losing 86 points to settle at 18,288 and its Selective Categories Index (CSCX) shedding 52 points to close the week at 10,962.