Stocks narrowly end 3-week losing streak
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Dhaka stocks ended barely a three-week losing streak in the past week as a section of institutional investors, including the Investment Corporation of Bangladesh, went for bargain hunting to halt the breathless fall in the market.
DSEX, the key index of the Dhaka Stock Exchange, added 0.02 per cent, or 1.01 points, over the past week to close at 4,772.00 points on Thursday, the last trading session of the week after losing 198 points in the previous three weeks.
The market opened the week with a slight gain on Sunday followed by plunges in two trading sessions that sank the DSEX to a three-year low on Tuesday, market operators said.
The market witnessed gain in the last two trading sessions that helped it to end the three-week slump, they added.
Investors, especially institutional ones like the ICB, concentrated on shares of large capitalised sectors helping the market to end on a positive mark despite fall in prices of two-thirds of the scrips.
Investors went for buying shares of the bank and energy companies with the expectation of better quarterly earnings. A number of banks declared profit growth in the July-September quarter compared with that in the previous year.
The net profit of Titas Gas soared by 37 per cent in the financial year 2018-19 compared with that in the previous year.
Average share prices of the energy, telecommunication and bank sectors advanced by 5.7 per cent, 2.8 per cent and 0.7 per cent respectively.
Out of the 355 issues traded during the week, 244 declined, 90 advanced and 21 remained unchanged.
Some investors went for bargain hunting as share prices of most of the companies dropped to lucrative levels.
The state-run Investment Corporation of Bangladesh obtained Tk 200 crore from Sonali Bank and The City Bank received Tk 50 crore from the Bangladesh Bank to invest the funds in the stock market.
Share prices of Grameenphone increased by 3 per cent over the week as investors hoped for a resolution of its audit dispute with the Bangladesh Telecommunication Regulatory Commission.
Although the market ended in the positive zone as trading closed for the week, most of the investors remained nervous on the trading floor amid the 9-month long market turmoil.
The daily average turnover on the DSE dropped to Tk 309.11 crore over the past week from Tk 312.77 crore in the previous week.
Most of the general and institutional investors remained reluctant to inject funds in the ailing capital market.
The market has been bearish for nine months that has dampened investors’ confidence in the market.
The market has been grappling with various issues including poor regulatory activities, approval of weak IPOs, and lack of governance and enforcement actions.
The core index slumped by 1,200 points in the period that eroded the market of capital worth Tk 62,000 crore.
On top of that, some of the brokerage houses kept conducting ‘forced sales’ to avoid risk in the margin loans.
Average share prices of non-bank financial institution, textile, food and pharmaceuticals dropped by 1.9 per cent, 1.7 per cent, 0.5 per cent and 0.49 per cent respectively.
EBL Securities, in its weekly market commentary, said that ‘Investors remained cautious in the first part of the week considering previous two weeks’ bearish trend. A section of investors had also engaged in selling spree in fear of further fall. However, in the latter part of the week, support from the ICB and institutional investors have revived the market.’
Shariah index DSES added 0.22 per cent, or 2.36 points, to finish at 1,096.39 points.
DS30, the blue-chip index of the DSE, however, lost 0.21 per cent, or 3.92 points, to close at 1,675.10 points.
National Tubes led the turnover chart with shares worth Tk 60.98 crore that changed hands over the week.
Grameenphone, Monno Jute Stafflers, United Power Generation Company, Standard Ceramic Industries, Sonar Bangla Insurance, Premier Bank, Square Pharmaceuticals, Silco Pharmaceuticals and Paramount Insurance were the other turnover leaders.
UPGDCL gained the most in the week with a 15.07-per cent increase in its share price while Monno Jute Stafflers performed the worst, losing 34.86 per cent.
Source: http://www.newagebd.net
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