Stocks recorded flat with volatility in the past week as mixed results of third quarter earnings of the listed companies drove investors’ nerve.
The third quarter earnings results that started pouring over the last weeks remained unpredictable due to mix trend of corporate earnings and offered investors room to rebalance their positions, dealers say.
The benchmark index DSEX inched over 19 points or 0.4% higher to 5,173, recovering marginally from 131 points lost in the previous week.
The comprising blue chips DS30 index was also slightly down almost 6 points or 0.4% to 1,949. The DSE Shariah Index closed at 1,220, edging 3 points or 0.4% higher.
The port city bourse Chittagong Stock Exchange (CSE) also saw marginal gain with its Selective Categories Index, CSCX, rose 23 points or 0.5% to close at 9,701.
Fresh funds injection slowed down last week with increased level of volatility. The week’s daily turnover averaged more than Tk55 crore, registering a decline of 15.5% over the previous week and lowest in seven weeks.
Investors concentrated on power, pharmaceuticals and banks, which together accounted for almost 50% of the week’s total turnover.
IDLC Investments in its weekly analysis said earnings disclosures and dynamic trading pattern highlighted last week’s market movements.
It said mixed market scenario was observed due to investors’ cautious re-balancing of portfolio ahead of corporate announcements.
LankaBangla Securities said the market experienced volatility throughout the week as most of the listed companies have published their Q3 (Jul-Sept 2014) earnings report.
It said the investors responded to quarterly earnings declarations of several stocks last week.
Particular issues from fuel and power and textile sectors grabbed the investors’ special attention, it said.
Fuel and power stocks dominated the week with a rise of over 3% gain. Fuel and power companies showed on an average meager growth in earnings in Q3, 2014.
All other major sectors yielded mix performance last week. Banks and non-banking financial institutions gained marginally. Profit booking took place on pharmaceuticals, food and allied, telecommunication.
Losers took a lead over the gainers as out of 314 issues traded, 150 declined, 146 advanced and 18 remained unchanged.
Grameenphone dominated the week’s top turnover chart with shares worth Tk13 crore changing hands, followed by Mobil Jamuna Limited Bangladesh, Titas Gas, Square Pharmaceuticals and Khulna Power Company Ltd.