Dhaka, Bangladesh (BBN)- Bangladesh’s stocks witnessed a significant correction last week, breaking seven-week winning streak amid shrinking turnover as the investors showed mixed reactions towards the quarterly earnings reports of the companies.
The week featured five trading sessions as usual and only one session managed to close positive while four sessions saw steep decline.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) dipped below 5,200-mark, shedding 131.73 points or 2.49 percent to close the week at 5,154.11 points.
The DS30, comprising blue chips index lost 54.12 points or 2.71 percent to close at 1,943.68 points. The DSE Shariah Index dropped 26.22 points or 2.11 percent to close at 1,216.24 points.
The port city bourse Chittagong Stock Exchange (CSE) also plummeted after seven week with its Selective Categories Index-CSCX – declined 234.07 points or 2.36 percent to close at 9,677.86 points.
Trading at DSE remained sluggish almost throughout the week. The total turnover for the week stood at BDT 32.73 billion which was BDT 48.10 billion in the week before.
The daily turnover for the week averaged BDT 6.54 billion, registering a decline of 31.95 per cent over the previous week’s average BDT 9.62 billion.
“Market remained volatile throughout the week, amid shrinking turnover and weakening investors’ confidence,” said IDLC Investments in its weekly analysis.
“Upcoming third quarter declaration motivated investors to re-balance their portfolio in line with changing expectations,” said the merchant bank.
“Rapid correction of the market during the week has made the investors cautious about the market,” said LankaBangla Securities.
July-September period’s corporate earnings have started come out which will influence the market’s direction, said the stock broker.
International Leasing Securities said: “The market’s gloomy vibe existed throughout the week as the investors showed mixed reactions towards the quarterly earnings reports of the listed companies”.
The losers took a strong lead over the gainers as out of 311 issues traded, 251 declined, 55 advanced and 5 remained unchanged on DSE floor during the week.
MJL BD dominated the week’s top turnover chart with shares worth BDT 1.47 billion changing hands followed by Titas Gas, Square Pharma, KPCL and RSRM Steels.
Shahjibazar Power Company was the week’s top gainer, posting a rise of 46.19 percent while EBL NRB Mutual Fund was the week’s worst loser, slumping by 20 percent.
BBN/SSR/AD-24Oct14-9:54 pm (BST)
