Dhaka, Bangladesh (BBN) – Bangladesh’s stocks extended the losing streak for the third straight week that ended on Thursday as risk-averse investors continued their selling spree amid earnings and dividend declarations session.
Analysts said profit taking and cautious trading amid ongoing earnings disclosures and year-end dividend declarations pushed the prime index into the red zone.
The week witnessed five trading sessions as usual. Of them, two sessions closed lower while two managed to close green.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, went down by 21.30 points or 0.35 percent to settle at 6,018 points.
The two other indices — the DS30 index and the DSE Shariah Index (DSES) – also followed the suit to close at 2,174 and 1,316 points, after losing 14.40 points and 12.95 points respectively.
The port city bourse, Chittagong Stock Exchange (CSE), also fell with its Selective Categories Index, CSCX, shedding 81 points or 0.71 per cent to settle at 11,249.
“The correction was triggered by the continuing fall of banking sector’s issues. Some large-cap stocks could not meet the investors’ expectation as they declared lower earnings and dividend,” commented City Bank Capital Resources, a merchant bank, in its weekly analysis.
The merchant bank noted that the market recovered more than 50 points in last two sessions and managed to keep the benchmark index above 6,000-mark for expecting better corporate disclosure ahead.
The total turnover for the week stood at BDT 28.49 billion on the DSE which was BDT 28.68 billion in the week before.
The daily turnover averaged at BDT 5.69 billion, which was 0.67 percent lower than the previous week’s average of BDT 5.74 billion.
Out of 336 issues traded, 207 closed lower, 113 closed higher and 16 remained unchanged on the DSE trading floor.
LankaBangla Finance topped the week’s turnover chart with 20.26 million shares of BDT 1.31 billion changing hands, closely followed by Brac Bank, BBS Cables, IFAD Autos and Grameenphone.
Gemeni Sea Food was the week’s best performer, posting 62.06 percent gain as investors grabbed its shares following the news of its hefty 125 percent stock dividend.
Zeal Bangla Sugar Mills was the worst loser, losing 19.75 percent following its no dividend recommendation.