Stocks halt 2-week rising streak DSE turnover drops by 14pc
Business Correspondent
Published :Sunday, 13 December, 2015, Time : 12:00 AM View Count : 21
Both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) returned to losing zone halting a two-week rising streak last week that ended on Thursday as the dominant small investors booked profit on previous gains, dealers said. DSEX, the prime index of the DSE, plunged 57.62 points or 1.24 per cent to 4,583.42 while The DS30 index, comprising blue chips, dipped by 31.14 points or 1.76 per cent to 1,741.09 and the Shariah Index DSES declined 18.87 points or 1.68 per cent to close the week at 1,105.36, against the previous week. At the CSE its Selective Categories Index CSCX dropped 146.67 points or 1.69 per cent to end the week at 8,505.05, against the previous week. Amid sluggish trading the total turnover at the DSE shrunk to to Tk 21.68 billion against Tk 25.08 billion in the week before. The average daily turnover was Tk 4.33 billion, down 14 per cent from the previous week's average of Tk 5.02 billion. Engineering, pharma and power sectors continued to be the lead attractions of investment, absorbing 25 per cent, 15 per cent, 12 per cent respectively of the total turnover of the week. A heavy selling pressure of blue chips including GP, Lafarge Surma and Titas Gas, weakened the transaction at the DSE. The named blue chips declined 7.0 per cent, 4.65 per cent and 4.30 per cent respectively last week. In its weekly market analysis, IDLC Investments, a merchant bank said: "Ripples in investors' sentiment and apparent lack of directions prompted much more market level volatility, last week." However, sectoral preference remained almost same as of the last week while investors' switch prolonged for lucrative price hunts, including better fundamentals, the merchant bank said. The week featured five trading sessions as usual. Of them, first session closed higher while last four edged down with high volatility. "Investors preferred to book quick gain on their investment over last few week's price surge as they remained uncertain of long term market stability," said International Leasing Securities, a stockbroker, in its weekly analysis. LankaBangla Securities, a stockbroker, said, "Selling frenzy couldn't let the market move through its resistance. DSEX touched its resistance at 4,656-level and could not break through it on the first day of the week. As a result, the market experienced correction during the last four trading sessions". "Correction of the stock price of large-cap companies such as Grameen Phone, Lafarge Surma, Titas Gas contributed to the decrease in index," said the stockbroker. Royal Capital, stockbroker, said in an analysis, "The market experienced sluggishness last week with lower volatility which was supported by sell-pressure of the investors. Some of them are in 'wait-and-see' mood with a hope of price recovery of the bourse" The investors were also in fear about winding up of two Mutual Funds --- AIMS First Guaranteed Mutual Fund and Grameen Mutual Fund One, which will be delisted at close of business on 31 December, 2015. The losers took a modest lead over the gainers as out of 324 traded issues, 150 closed lower, 142 higher and 32 remained unchanged on the DSE trading floor last week. The market capitalisation of the DSE went down by 1.66 per cent as it was Tk 3,200.64 billion on the opening day of the week and it stood at Tk 3,147.38 billion on closing day of the week. Keya Cosmetics recommended dividend last week. The company recommended 20 per cent stock dividend for the year ended on June 30, 2015. The company also disbursed 20 per cent stock dividend last year. Quasem Drycells dominated the week's turnover chart with shares of Tk 951.22 million changing hands during the week followed by BSRM Steels Tk 870 million, Square Pharma Tk 766 million, Delta Life Insurance Tk 697 million and Beximco Pharma Tk 675 million. Hakkani Pulp and Paper was the week's best performer, posting a rise of 26.94 per cent while Far East Knitting and Dyeing Industries was the week's worst loser, plunging by 20.83 per cent.