Stocks fall on sell-off to finish week down

Stock markets fell for the third session yesterday, giving up the gains of the previous months on a massive sell-off that dragged down major price indices, with even some economic data highlighting higher growth prospect for the year, reports BSS.
“In absence of any visible support, market kept losing ground and most of the scrips retreated in face of liquidation pressure,” said IDLC Investment Limited.
It said that most of the large-cap stocks faced bad days during the week that took the border index at Dhaka Stock Exchange (DSE) to one month low.
During the week the DSEX ended higher for two days, but the small gains lost to the bigger loss in the rest three trading sessions. The general market barometer finally took shelter below 4800 points level at 4781.36, with the selective blue-chip DS30 and Shariah DSES ending the week lower at 1815.99 and 1149.72 respectively.
The development partners including the World Bank, the Asian Development Bank (ADB) and the International Monitoring Fund (IMF) upgraded their economic forecast for Bangladesh for the current 2015-16 financial year (FY16).
Bangladesh Bank (BB) recent data also showed stronger trend in the inflow of remittance and eventual rise in the foreign exchange reserve. The positive news, however, was largely ignored by the investors as their focus was on sectoral update and corporate disclosure.
Market analysts believed that the news about singing of Trans-Pacific Partnership (TPP) impacted the textile stocks on apprehension that apparel sector would loss competitiveness due to the TPP.
The planned merger of two mobile companies caused fall in the market share of the listed cell-phone giant Grameen Phone.
All the major sectors were also dragged down on heavy sell-off as investors remained on the sidelines. The major losing sectors were telecommunication (-8.89 pre cent), cement (-4.84 pre cent) and engineering (-4.11 pre cent). The major losing companies were FAR Chemical (16.3 pre cent) All Tex (-13.0 pre cent) and Apex Foods (-11.9 pre cent).
Among the major gaining sectors, gainers were bank, (2.08 pre cent) and mutual fund (1.94 pre cent). Top gaining companies were Green Delta MF (21.3 pre cent), Aziz Pipes (14.3 pre cent), Brac Bank (12.6 pre cent), DBH1st MF (12.2 pre cent), and Anwar Galvanising (11.3 pre cent).
“Buying interest waned after witnessing 75 points fall in DSEX in past five trading sessions,” said Lanka Bangla Securities Limited as it was analysing the cause of the persisting down trend on the stock market.
It said on the last day of the week, market was struggling as pharma, engineering, textile, fuel and power and some heavyweight multinational stocks are dragging consistently which is wobbling the market sentiment.
The market return was negative implying loss of value of most scripts. Sharp Ratio tracked a drastic fall from previous week, reflecting worse market performance, said Royal Capital.
According to the analysis of the brokerage firm, the decline in average market capitalisation and increase in total turnover caused by offloading of funds of some scripts. As a result, only three sectors were positive when 15 sectors performed worse in return generation.
Average daily turnover in value during the week was 13.37 pre cent down at Tk 378.94 crore when the daily trade volume was up by 25.47 pre cent to 11.32 crore shares as investors were selling more than buying. Chittagong Stock Exchange (CSE) also closed the week in red when its major CSCX index ended over 43 points down at 8913.20.
Like DSE, the market on CSE was highly in favour of buyers, with most issues traded closing lower. On the last trading session, only 75 securities closed higher against 131 losing issues when the daily trade value was Tk 30.38 crore for little over 1 crore shares.

Stocks fall on sell-off to finish week down

Stock markets fell for the third session yesterday, giving up the gains of the previous months on a massive sell-off that dragged down major price indices, with even some economic data highlighting higher growth prospect for the year, reports BSS. In absence of any visible support, market kept losing ground and most of the scrips retreated in face of liquidation pressure, said IDLC Investment Limited. It said that most of the large-cap stocks faced bad days during the week that took the border index at Dhaka Stock Exchange (DSE) to one month low. During the week the DSEX ended higher for two days, but the small gains lost to the bigger loss in the rest three trading sessions. The general market barometer finally took shelter below 4800 points level at 4781.36, with the selective blue-chip DS30 and Shariah DSES ending the week lower at 1815.99 and 1149.72 respectively. The development partners including the World Bank, the Asian Development Bank (ADB) and the International Monitoring Fund (IMF) upgraded their economic forecast for Bangladesh for the current 2015-16 financial year (FY16). Bangladesh Bank (BB) recent data also showed stronger trend in the inflow of remittance and eventual rise in the foreign exchange reserve. The positive news, however, was largely ignored by the investors as their focus was on sectoral update and corporate disclosure. Market analysts believed that the news about singing of Trans-Pacific Partnership (TPP) impacted the textile stocks on apprehension that apparel sector would loss competitiveness due to the TPP. The planned merger of two mobile companies caused fall in the market share of the listed cell-phone giant Grameen Phone. All the major sectors were also dragged down on heavy sell-off as investors remained on the sidelines. The major losing sectors were telecommunication (-8.89 pre cent), cement (-4.84 pre cent) and engineering (-4.11 pre cent). The major losing companies were FAR Chemical (16.3 pre cent) All Tex (-13.0 pre cent) and Apex Foods (-11.9 pre cent). Among the major gaining sectors, gainers were bank, (2.08 pre cent) and mutual fund (1.94 pre cent). Top gaining companies were Green Delta MF (21.3 pre cent), Aziz Pipes (14.3 pre cent), Brac Bank (12.6 pre cent), DBH1st MF (12.2 pre cent), and Anwar Galvanising (11.3 pre cent). Buying interest waned after witnessing 75 points fall in DSEX in past five trading sessions, said Lanka Bangla Securities Limited as it was analysing the cause of the persisting down trend on the stock market. It said on the last day of the week, market was struggling as pharma, engineering, textile, fuel and power and some heavyweight multinational stocks are dragging consistently which is wobbling the market sentiment. The market return was negative implying loss of value of most scripts. Sharp Ratio tracked a drastic fall from previous week, reflecting worse market performance, said Royal Capital. According to the analysis of the brokerage firm, the decline in average market capitalisation and increase in total turnover caused by offloading of funds of some scripts. As a result, only three sectors were positive when 15 sectors performed worse in return generation. Average daily turnover in value during the week was 13.37 pre cent down at Tk 378.94 crore when the daily trade volume was up by 25.47 pre cent to 11.32 crore shares as investors were selling more than buying. Chittagong Stock Exchange (CSE) also closed the week in red when its major CSCX index ended over 43 points down at 8913.20. Like DSE, the market on CSE was highly in favour of buyers, with most issues traded closing lower. On the last trading session, only 75 securities closed higher against 131 losing issues when the daily trade value was Tk 30.38 crore for little over 1 crore shares.