Weekly analysis: Major sectors witness mixed trend

FE Report | Published: July 21, 2018 10:44:14 | Updated: July 22, 2018 15:31:45

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The major sectors saw mixed trend last week that ended Thursday as investors were active both sides of trading fence amid ongoing earnings and dividend declaration.

Of the 19 sectors listed with the prime bourse, the market-cap of 11 sectors saw downturn while eight ended higher, according to weekly analysis of the Dhaka Stock Exchange (DSE) and LankaBangla Securities.

Among the major sectors, banking posted the highest negative return of 2.80 per cent as prices of 28 banks ended lower, out of 30. Ten banks lost more than 5.0 per cent during the week.

Among the bank issues, Mercantile Bank was the biggest loser, losing 8.50 per cent, followed by Shahjalal Islami Bank with 6.90 per cent, Jamuna Bank 6.80 per cent, Premier Bank 6.50 per cent, ICB Islami Bank 6.0 per cent, IFIC Bank 5.80 per cent.

The cement sector fell 3.10 per cent as prices of five issues of the sector closed lower, out of seven.

Of the issues, Heidelberg Cement lost 7.30 per cent despite the board of directors of Heidelberg Cement has approved a draft scheme of amalgamation of the Meghna Energy with the Heidelberg Cement last week.

Among other cement companies, Meghna Cement lost 7.0 per cent, followed by MI Cement 3.70 per cent, LafargeHolcim 2.30 per cent and Premier Cement 1.80 per cent.

The non-bank financial institutions also lost 1.75 per cent as 18 issues of the sector ended lower, out of 23.

Of the NBFIs issues, Premier Leasing & Finance and Bay Leasing & Investment witnessed highest correction of 9.90 per cent each.

IDLC Finance also lost 9.80 per cent, followed by International Leasing with 8.40 per cent, BD Finance 7.60 per cent, First Finance 6.90 per cent and LankaBangla Finance 5.90 per cent.

Paper & printing sector also plunged 8.26 per cent as prices of newly listed Bashundhara Paper Mills fell sharply by 9.0 per cent to close at Tk 139.10 each.

Bashundhara Paper Mills, a concern of the country's leading business conglomerate, Bashundhara Group, made its share trading debut on July 2, which raised a capital worth Tk 2.0 billion by floating more than 26 million ordinary shares under the book-building method.

Insurance, mutual fund, ceramic, services & real estate, travel & leisure, food & allied and power sectors also lost 2.28 per cent, 2.21 per cent, 1.61 per cent, 1.39 per cent, 1.01 per cent, 0.86 per cent and 0.01 per cent respectively.

On the other hand, IT sector posted the highest gain of 12.45 per cent, followed by tannery with 5.10 per cent, engineering 3.62 per cent, telecommunication 3.25 per cent, miscellaneous 2.35 per cent, textile 1.48 per cent, jute 0.76 per cent and pharmaceuticals 0.68 per cent.

The IT sector saw 12.45 per cent positive return as all eight issues of the sector closed higher.

Of the IT companies, IT Consultant was the biggest gainer, soaring 29.10 per cent to close at Tk 51.40 each on Thursday, followed by Intech 14.40 per cent, Aamra Networks 11.10 per cent, Information Services Network 4.0 per cent and Daffodil Computer 3.60 per cent.

The heavyweight telecommunication sector, which comprised two issues - Grameenphone (GP) and Bangladesh Submarine Cable Company (BSCCL), also saw 3.25 per cent rise as prices of largest market cap GP's share price rose 3.0 per cent to close at 401.80 on Thursday, the last trading day of the week following its interim dividend declaration.

GP, the lone listed mobile phone company, disclosed April-June, 2018 earnings results on Monday last, recommending 125 per cent interim cash dividend for the half year ended on June 30, 2018.

The company's earnings per share (EPS) increased to Tk 8.0 in the April-June quarter from Tk 5.87 of the same quarter a year ago.

In the six months for January-June, 2018, the company's EPS was Tk 12.74 as against Tk 10.72 for January-June, 2017.


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