Stocks back to red zone on poor reports
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Dhaka stocks dropped in the past week after gaining in the previous week as investors became disappointed over a slew of poor financial disclosures from major companies.
DSEX, the key index of Dhaka Stock Exchange, dropped 1.29 per cent, or 61.55 points, over the week to close at 4,710.37 points on the last trading session of the week on Thursday, after gaining 89.01 points in the week before.
The market opened on Monday with the DSE gaining slightly but fell in the rest of the three sessions as investors opted to go for share sale amid poor financial disclosures by the listed companies, market operators said. The market was closed on Sunday on the occasion of Eid-e-Miladunnabi.
The market operators said that a number of major companies witnessed slump in profits that worried investors about the companies’ business prospects.
State-run Investment Corporation of Bangladesh declared a loss of Tk 1.93 per share for the July-September period of this year compared with that of Tk 0.41 profit per share in the same period of last year.
ACI Limited, Shahjibazar Power Company, BSRM Steel, Titas Gas and Premier Cement witnessed fall in their profits in July-September period.
Profits of Aman Feed, Shepherd Industries and Alif Manufacturing Company also fell in the period.
The market gained in the week before last when some investors went for bargain hunting after share prices of most of the companies came down to lucrative levels. Lower-than-expected financial disclosures, however, darkened the market scenario yet again in the past week.
The country’s capital market remained bearish for almost 10 months following the regulators’ failure to prevent the plunge in stock prices and revive investors’ confidence, market operators said.
They said that the market was battling with issues like the volatility of the financial sector, poor corporate governance, lack of regulatory measures to improve the state of the market and approvals of weak initial public offerings.
EBL Securities, in its weekly market commentary, said that the DSEX ended in red in the past week led by the investors’ short term profit-booking sell-offs amid unsatisfactory earnings disclosure of companies.
Average share prices of non-bank financial institutions, textiles, telecommunications and banks dropped by 3.5 per cent, 2.7 per cent, 2.2 per cent and 0.9 per cent respectively.
Out of 355 companies whose shares were traded in the past week, prices of 222 declined, 106 advanced and 27 remained unchanged.
The daily average turnover on the DSE, however, increased to Tk 349.54 crore over the past week from Tk 331.02 crore in the previous week.
Shariah index of the bourse, DSES, shed 0.79 per cent, or 8.65 points, in the past week to close at 1,080.92 points.
DS30, the blue-chip index of the DSE, slumped by 1.19 per cent, or 19.67 points, and closed at 1,638.25 points.
National Tubes led the turnover chart for the third consecutive week with shares worth Tk 49.12 crore traded during the week.
Sonar Bangla Insurance, Renata, WATA Chemicals, Fortune Shoes, Square Pharmaceuticals, Shurwid Industries, Standard Ceramic Industries, Khulna Power Company and Rupali Life Insurance Company were the other turnover leaders.
Sonar Bangla Insurance performed the best during the week with a 17.26-per cent increase in its share price while Ratanpur Steel Re-Rolling Mills performed the worst, losing 14.75 per cent.
Source: http://www.newagebd.net
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