Weekly sector-wise analysis: 12 sectors end lower, 7 higher

Most of the sectors saw price correction last week with banking, financial institutions and telecommunication sectors suffering most as investors sold December-ending stocks.

Of the 19 sectors listed with the Dhaka Stock Exchange, the market-cap of 12 sectors closed lower while seven others managed to end higher, according to weekly analysis of the Dhaka Stock Exchange (DSE) and LankaBangla Securities.

The heavyweight banking sector witnessed the highest loss of 4.68 per cent as 28 issues of the sector saw price correction, out of 30 listed banks. Twelve banks of the sector saw more than 5.0 per cent correction.

Of the banks, Premier Bank witnessed the big hit, losing 10.70 per cent, followed by Rupali Bank with 8.40 per cent, Exim Bank 7.40 per cent, Dhaka Bank 7.10 per cent, National Bank 7.0 per cent, City Bank 6.60 per cent, NCC Bank 6.50 per cent, Pubali Bank 6.40 per cent.

Market insiders said the rising trend of non-performing loans (NPLs) of banks eroded investors' appetite for financial sectors.

According to media reports on Tuesday, the amount of non-performing loans jumped by over 20 per cent to Tk 893.40 billion at the end of June this year from December last year despite close-monitoring by the central bank.

The non-bank financial institutions sector also suffered 3.65 per cent loss as prices of 20 issues of the sector closed lower, out of 23.

Of the financial institutions issues, National Housing Finance was the highest loser, plunging by 16.70 per cent. It was also the week's worst loser.

Among other financial issues, Midas Financing lost 10.30 per cent, followed by GSP Finance with 9.50 per cent, FAS Finance 8.50 per cent, IPDC Finance 8.50 per cent, BD Finance 8.40 per cent, International Leasing 8.0 per cent and Peoples Leasing 7.70 per cent.

The heavyweight telecommunication sector, which comprised two issues, Grameenphone (GP) and Bangladesh Submarine Cable Company Limited (BSCCL), also slumped 3.77 per cent.

GP's share price plunged more than 4.0 per cent to close at Tk 370.60 each on Thursday and share price of BSCCL also slumped 11 per cent to close at Tk 96.60 each on Thursday.

Other losing sectors were mutual funds 2.78 per cent, travel & leisure 2.52 per cent, IT 1.52 per cent, services & real estate 1.50 per cent, jute 1.06 per cent, pharmaceuticals 0.83 per cent, cement 0.56 per cent, miscellaneous 0.61 per cent and paper & printing 0.48 per cent.

On the other hand, seven sectors ended higher last week with insurance sector posting the highest gain of 19 per cent, followed by ceramic with 4.14 per cent, engineering 2.74 per cent, textile 2.61 per cent, power 2.21 per cent, tannery 0.08 per cent and food 0.06 per cent.

Insurance sector posted the highest return, largely driven by life insurers.

Of the life insurance issues, National Life Insurance was the biggest gainer, soaring 48 per cent to close at Tk 222.30 each on Thursday. It was also the week's best performer.

Popular Life Insurance also gained 16 per cent, followed by Rupali Life Insurance with 11 per cent, Meghna Life Insurance 5.0 per cent and Delta Life Insurance 3.0 per cent.

The textile sector also gained 2.61 per cent last week as investors showed buying appetite on textile issues riding on the tax cut news.

According to media reports, the government has cut source tax on export earnings for readymade garments and other export-oriented sectors to 0.60 per cent from 1.0 per cent.

The corporate tax rate for apparel makers and exporters has also been reduced to 12 per cent from 15 per cent.

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