Stocks open a fresh week today after witnessing price correction in the past week, breaking two weeks of gaining streak.
Throughout the week, investors showed a mixed response to earnings expectations and investment scenario, which eventually resulted in profit booking and fresh positioning in other scrips, according to dealers.
The benchmark the DSE General Index (DGEN) lost 116 points or 2.5% during the week to close at 4,568.
The index will be removed from the main board this month.
The free-float based index, DSEX, was down 39 points or 0.92% to 4,223. The blue chip index DS30 shed 21 points or 1.4% to 1,599.
The Chittagong Stock Exchange (CSE) Selective Category Index, CSCX, declined 63 points or 0.8% to 8,346.
The week featured five trading sessions as usual. Among them, three sessions faced heavy correction while two sessions gaining marginally.
The week’s average daily turnover was Tk8.6bn, little less than Tk10bn of the previous week.
“Expectation-based rollercoaster seemed dominating the bourse over the week ahead of corporate declaration,” said IDLC Investments in its weekly market analysis.
Investors’ sentiment rocked back and forth over vibrant political scenario while stock-wise expectations eventually going negative as the week ended, it said.
Profit taking contributed to the declining tone as the week started with slower participation.
As political front went vibrant, market sentiment was slightly shaky over future directions, according to the IDLC.
However, stock specific movements were active as the investors were focusing on imminent corporate declaration, it said.
At the ending session, higher sale-pressure was observed mostly from telecommunications sector, as half-yearly earning of GP missed investors' expectation, the merchant bank said.
Besides, swings in large cap scrips, profit taking motive, the investors' cautious movement and portfolio rebalancing pushed the market into a negative trajectory.
“The market fall was triggered by sharp fall in second quarter earnings reported by largest capitalised company, Grameenphone (GP),” said Langka Bangla Securities.
GP's net profit in the second quarter fell by around 87%.
The stock price declined 17% in the closing trading session from the previous session.
Huge provisioning requirement for tax expenses and differed tax liabilities has pulled down GP’s second quarter earnings per share (EPS) from Tk 3.31 per share to Tk0.43 per share.
The losers took a modest lead over the gainers as out of 295 issues traded during the week at DSE, 191 declined, 94 advanced and 10 remained unchanged.
All the major sectors ended in red except fuel and power with a gain of 3%.
Telecommunications was the worst loser with 8.9% loss as GP went down by 11% in the week following its earning declaration.
It was followed by pharmaceuticals, NBFIs and banks which lost 5%, 4.8% and 1.3% respectively in the week.
Meghna Petroleum became the week's top turnover leaders with shares worth Tk3.4bn changing hands followed by GP, Padma Oil, Titas Gas, BSCCL, Jamuna Oil and Olympic Industries.
