Dhaka stocks fall for 5th week as investors remain cautious

Dhaka stocks in the past week dropped again, stretching the bear run to the fifth week, as investors remained puzzled about the market prospect amid continuous woes in the banking sector.
DSEX, the key index of Dhaka Stock Exchange, declined 0.59 per cent, or 34.00 points, over the week to close at 5,711.83 points on Thursday, the last trading session of the week.
DSEX lost 238 points in last five weeks.
The trading on the bourse was shortened to four sessions due to general holiday in Dhaka on February 28 for city corporation elections.
The market witnessed fall in three days over the four-day week as investors continued selling shares amid cautiousness as they were not sure where the market was heading, market operators said.
They said that investors remained sceptical about the upcoming dividend declarations of the banking sector amid the poor performance of the sector in regards to rising non-performing loans.
They said that the continuous selling of shares from sector-specific scrips resulted in fall in share prices of more than two-thirds of the traded scrips.
EBL Securities in its weekly market commentary said ‘The prime bourse of the country extended their losing streak for the fifth straight week as investors were taking a ‘cautious’ stance ahead of year-end declarations by the companies.’
It said, ‘Bank and financial institution sectors experienced price corrections due to recent uncertainty, poor governance and NPL issue.’
The financial sector led the dive with a fall in share prices of non-bank financial institutions and bank by 1.5 per cent and 0.6 per cent respectively.
Share prices of textile, energy and cement also dropped by 2.2 per cent, 1.5 per cent and 0.6 per cent respectively.
Among the other large capitalised scrips, share prices of United Power Generation Company, Investment Corporation of Bangladesh and City Bank dropped most on the week.
On the other hand, average share prices of telecommunication, food and pharmaceutical sectors advanced by 2.1 per cent, 0.9 per cent and 0.4 per cent respectively that saved the market from further fall.
The daily average turnover on DSE declined further by 8.44 per cent to Tk 666.91 crore in last week from Tk 728.35 crore in the previous week.
Out of the 349 traded issues, 242 declined, 82 advanced and 24 remained unchanged. DS30, the blue-chip index of DSE, shed 0.18 per cent, or 3.53 points, to close at 1,998.65 points.
Shariah index DSES, however gained 0.13 per cent, or 1.73 points, to finish at 1,314.64 points.
Bangladesh Submarine Cable Company led the turnover chart with its shares worth Tk 134.5 crore changing hands in the week.
UPGDCL, Monno Ceramic Industries, Square Pharmaceutical, Fortune Shoes, Khulna Power Company, Legacy Footwear, Grameenphone, BRAC Bank and Sonar Bangla Insurance were the other turnover leaders.
Takaful Islamic Insurance gained the most in the week with a 20.92-per cent increase in its share prices, while Emerald Oil was the worst loser, shedding 29.61 per cent.
Source: http://www.newagebd.net

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