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Dhaka Tribune

Stocks under selling pressure for 4th week

Update : 29 Nov 2014, 06:19 PM

Stocks remained under selling pressure for the fourth consecutive week with both index and turnover falling to their lowest in recent months.  

Dealers said investors, even institutional and big individual players, stayed on the sidelines in fear of further losses and also ahead of year-end closing when institutions realigned their portfolios.

In the past week that ended Thursday, the benchmark index of Dhaka Stock Exchange, DSEX, closed at 4,772, plunging 127 points or 2.6%.

The comprising blue chips DS30 index lost 54 points or 3% to 1,761.

The DSE Shariah Index fell 39 points or 3.4% to 1,106.

The port city bourse Chittagong Stock Exchange (CSE) also saw steep decline with its Selective Categories Index, CSCX, was down 301 points or 3% to settle at 8,952.

The market’s participation dropped sharply and the week’s total turnover plummeted to Tk163 crore against previous week’s Tk313 crore.

The weeks’ daily average turnover was Tk325 crore, registering a decline of 48% over the previous week’s average of Tk627 crore.

Investors gave concentration on mainly stocks like pharma, power and engineering hat that accounted for 16.6% of the week’s total and 14.9% of the week’s daily average turnover.

IDLC Investments said investors tried to save whatever little gain they had in the last rally and in the process further pulled down the index.

It said fresh fund injection almost came to a halt as investors fear further correction. The benchmark index broke 4,800 points support level as frustrated investors tried to escape the downfall, it said.

LankaBangla Securities said the benchmark index observed another week of correction as investors seem to be acting cautiously.

The steep decline in turnover last week showed lack of investors’ participation at this price level, it said, adding that market needs some consolidation at this level for reversal. The next support level for the market is around 4,700-level.

All the major sectors yield negative returns last week, except food and allied, which witnessed marginal appreciation of 0.22%.

Fuel and power registered the week’s highest losses, shedding 7%, followed by telecommunication at 6%.

Non-banks, pharmaceuticals and banks also lost almost 4%, 2.6% and 0.8% respectively.

Losers took a strong lead over the gainers as out of 316 issues traded, 244 declined, 48 advanced and 24 remained unchanged on the DSE.

Western Marine Shipyard dominated the week’s top turnover chart, with shares worth Tk72 crore changing hands followed by Jamuna Oil, Lafarge Surma Cement, Beximco Pharma and Khan Brokers PP Woven Bag. 

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