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Dhaka Tribune

Bear-spell continues on stock market for 3rd week

Update : 22 Oct 2015, 07:28 PM

For the third straight week, bear-spell continued on the stock market that ended as sell-pressure pulled down most stock prices.

During the week that ended Wednesday instead of Thursday on the occasion of public holiday due to ‘Durga Puja’, the benchmark of Dhaka Stock Exchange, DSEX, lost almost 30 points or 0.7% to settle at 4,647- lowest in four months. In the last three weeks, it declined more than 200 points.

The blue-chip comprising index DS30 was down 4 points or 0.3% to 1,762. The DSE Shariah Index, DSES, fell over 1 points or 0.2% to 1,113.

The Chittagong Stock Exchange Selective Categories Index, CSCX, closed at 8,636, dropping 55 points or 1.2%.

Trading activities also continued to shrink as the DSE average daily turnover value stood at Tk340 crore in the past the week, down 12.5% over the previous week.

Investors were most active in engineering and pharmaceuticals, as they captured more than 16% and 12% respectively of the week’s total turnover.

Large cap sectors showed mixed performance during the week. Heavyweight telecommunications sector gained a significant nearly 4 % after suffering heavily in the previous two weeks.

Non-banking financial institutions also went up by 2.5%, breaking their losing streak over the weeks. Food and allied ended the week marginally 0.4% higher.

Banks retraced 2.12% and Cement moved 0.98% down over the week. Power and Pharmaceuticals lost 0.46% and 0.12% respectively over the week.

Investors had a mixed reaction to the news that the country’s banking sector showed mixed performance in the second quarter (Q2) of this calendar year with a fall in their profitability that drew the regulator’s note of caution.

Bank was the week’s worst sufferer, shedding 2.2%, followed by non-life insurance 1.2%.

IDLC Investments said though the market started with a torment situation like previous week, the bourse finally retreated, finding a support at 4,600-level.

The retreat was primarily backed by large cap scrips which faded significantly over the last couple of months, it said, adding that investors continued focusing on upcoming quarterly earnings declaration.

“Hence, they were taking scrip-wise position on the expectation of short-term profit booking. As investors were not finding any ground of clear confirmation on upbeat reversal, they opted more on bargain hunting.”

Lanka Bangla Securities said the week started with steep cut weighed down by bank, real estate and pharma stocks.

It said benchmark index hit its strong support at 4,600-level as investors were playing safe seeing continual drop in index reading. 

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