Dhaka stocks snap 6-week rally on MPS, poor earnings

Dhaka stocks plunged in the past week, snapping the consecutive surge in the previous six weeks, as investors went for profit taking share sales amid disappointment over poor financial results and central bank’s monetary policy. 
DSEX, the key index of DSE, slumped 2.17 per cent, or 129.00 points, to close at 5,821.01 points on Thursday, the last trading session of the week after gaining 698 points in the previous six consecutive weeks.
The market witnessed fall in four out of five sessions as investors went for profit taking share sales from their recent gains.
Share prices of most of the companies surged in previous six weeks that prompted investors to book profits. 
Besides, the Bangladesh Bank announced monetary policy for the second half (January-June) of FY19 on January 30 reducing the private sector credit growth target to 16.5 per cent after missing its projection of 16.8 per cent for July-December of the fiscal year.
‘The capital bourse of the country passed a sluggish week amid profit booking selling pressure in large-cap stocks. Core index faced a major correction following the issues emerged from both pre and post monetary policy statement announcement,’ said EBL Securities in its weekly market commentary.
In addition, a number of companies declared profit fall in the half yearly declarations that also discouraged investors, market operators said.
The financial sector led the plunge over the week amid a decline in share prices of non-bank financial institution and bank by 7.0 per cent and 5.4 per cent respectively after their continuous surge.
Out of 53 traded bank and NBFIs, all the scrips except two banks dropped over the week.
Share prices of ACI plummeted by 11.45 per cent to close the week at Tk 299.30 as the profit of the company slumped by 94.30 per cent in July-December, 2018 compared with that in the same period of the previous year.
Share prices of Investment Corporation of Bangladesh plunged by 6.5 per cent on the week as the company declared a profit fall by 80.50 per cent to Tk 0.63 earnings per share in the July-December, 2018 period compared with that of Tk 3.23 in the same period of the previous year.
EPS of Global Heavy Chemicals, Aamra Network, Bashundhara Paper Mills dropped, so did their share prices.
Share prices of life insurance, textile and pharmaceutical sectors dropped by 4.6 per cent, 1.2 per cent and 0.6 per cent respectively.
On the other hand, share prices of life energy, general insurance and telecommunication advanced by 2.9 per cent, 2.3 per cent and 1.0 per cent respectively over the week.
The daily average turnover on Dhaka Stock Exchange however, advanced by 7.12 per cent to Tk 1,034.26 crore in the last week from Tk 965.54 crore in the previous week.
Out of the 348 traded issues, 238 declined, 105 advanced and 5 remained unchanged.
DS30, the blue-chip index of DSE, plunged 2.00 per cent, or 41.04 points, over the week to close at 2,007.96 points.
Shariah index DSES also dropped 0.83 per cent, or 11.01 points, to close at 1,310.60 points.
United Power Generation Company led the turnover chart with its shares worth Tk 193.15 crore changing hands in the week.
Premier Bank, Grameenphone, Eastern Housing, United Finance, Square Pharmaceuticals, Eastland Insurance Company, Bangladesh Submarine Cable Company, Provati Insurance Company and BBS Cables were the other turnover leaders.
Provati Insurance Company gained the most in the week with a 54.51-per cent increase in its share prices, while Meghna Pet Industries was the worst loser, shedding 20.10 per cent.
Source: http://www.newagebd.net

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