Stocks dip for 2nd week as financial scrips tumble
Dhaka stocks dipped last week, the second week in a row, as a section of investors continued selling shares to book profits while others readjusted their portfolios targeting at sector-specific large capitalised scrips.
DSEX, the key index of Dhaka Stock Exchange, dropped by 0.16 per cent, or 9.09 points, in the week to close at 5,811.92 points on Thursday, the last trading session of the week, after losing 129 points in the previous week.
Before the two weeks’ loss, the key index had gained 698 points in a six-week bull run.
The market was choppy throughout the week with DSEX decreasing in three trading days and advancing in two trading days as investors were active on both sides of the trading fence, market operators said.
They said a section of investors kept taking profits after a rally in last month.
Besides, some investors were assessing the possible impacts on the market of the Bangladesh Bank’s monetary policy statement for the second half (January-June) of FY19 declared on January 30 and relaxation of loan write-off policy by the central bank, enhancing banks’ authority for writing off bad loans without filing lawsuit for recovery, market operators said.
‘Investors seemed to be rebalancing their portfolios ahead of earnings and yearly disclosures. Moreover, a newly listed stock made its debut on the market and some selling pressures were seen to free up funds,’ said EBL Securities in its weekly market commentary.
As Bangladesh Bank introduced some changes regarding NPL management, the bank sector went through some corrections, it said.
Genex Infosys made trading debut on February 6.
The financial sectors led the fall on the week. Average share prices of general insurance, life insurance, non-bank financial institution and bank dropped by 7.4 per cent, 4.7 per cent, 2.0 per cent and 1.5 per cent respectively.
The daily average turnover on DSE dropped by 20.33 per cent to Tk 823.95 crore in last week from Tk 1,034.26 crore in the previous week.
Investors seemed to be taking fresh positions regarding multinational companies ahead of their year-end corporate disclosures, causing all the MNCs except two advanced over the week.
Among the large capitalised scrips, a surge in share prices of Berger Paint, Grameenphone, United Power Generation Company and BRAC Bank saved the market from further fall.
Average share prices of energy, pharmaceutical and telecommunication advanced by 3.0 per cent, 2.8 per cent and 2.1 per cent respectively.
Out of the 348 traded issues, 208 declined, 124 advanced and 17 remained unchanged.
DS30, the blue-chip index of DSE, however, gained 0.90 per cent, or 18.13 points, over the week to close at 2,026.09 points.
Shariah index DSES also added 0.98 per cent, or 12.80 points, to close at 1,323.40 points.
United Power Generation Company led the turnover chart with its shares worth Tk 316.07 crore changing hands in the week.
Bangladesh Submarine Cable Company, Khulna Power Company, Grameenphone, Premier Bank, Monno Ceramic Industries, Sonar Bangla Insurance, Meghna Petroleum, Singer Bangladesh and Bangladesh Shipping Corporation were the other turnover leaders.
Berger Paint Bangladesh gained the most in the week with a 25.34-per cent increase in its share prices, while Prime Insurance Company was the worst loser, shedding 22.05 per cent.
Source: http://www.newagebd.net
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