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The Financial Express

Weekly review: Stocks slip into red amid profit booking sell-offs

| Updated: November 01, 2020 16:14:54


Lankabangla and Fianancial Express Lankabangla and Fianancial Express
Weekly review: Stocks slip into red amid profit booking sell-offs

Stocks slipped into the red in the outgoing week as shaky investors went on selling binge on sector-wise issues amid ongoing corporate declarations.

Week-on-week, DSEX, the benchmark index of Dhaka Stock Exchange (DSE), went down by 67.93 points or 1.38 per cent to settle at 4,846, after gaining 41 points in the week before.

Market operators said the retail investors went on profit booking sell-offs on major sector stocks while institutional investors remained on the sidelines amid ongoing corporate declarations, taking the prime index down.

The risk-averse investors opted to liquidate their investment amid lower than expected year-end dividend and quarter-end earning disclosures of many companies, said a merchant banker.

He noted that sell pressure was prevalent almost throughout the week due to the profit booking selling frenzy, as many investors opted to cash out gains from large-cap issues.

The week featured four trading days as the market remained closed on October 26 due to Durga Puja festival. Of them, the first three sessions faced correction while the last one edged higher.

During the period under review, two other DSE indices also ended marginally lower. The DSE 30 Index comprising blue chips fell 8.48 points to finish at 1,680 while the DSE Shariah Index (DSES) lost 15.37 points to close at 1,098.

Total turnover, a crucial indicator of the market, came down to Tk 39.62 billion last week which was Tk 42.40 billion in the week before as last week had a trading session short.

However, the daily turnover averaged Tk 9.90 billion last week which was Tk 8.48 billion in the previous week, registering an increase of 17 per cent.

Losers took a strong lead over the gainers as out of 360 issues traded, 210 closed lower, 106 ended higher and 44 issues remained unchanged on the DSE floor.

The market capitalisation of the DSE also dropped by 1.34 per cent week-on-week to Tk 3,912 billion on Thursday.

The insurance sector continued to dominate the week’s turnover chart as eight insurers out of top 10 turnover companies belong to the mentioned sector.

Beximco Pharma topped the chart with 13.12 million shares worth Tk 1.55 billion changing hands during the week, followed by Sandhani Life Insurance, Global Insurance, Express Insurance and Pioneer Insurance.

Bay Leasing was the week’s best performer, posting 17.13 per cent gain while Generation Next Fashions was the week’s worst loser, dropping 27.66 per cent following its ‘no’ dividend declaration.

The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index (CASPI) losing 205 points to settle at 13,824 and the Selective Categories Index (CSCX) shedding 113 points to close at 8,319.

Of the issues traded, 174 declined, 98 advanced and 42 remained unchanged on the CSE.

The port city’s bourse traded 55.02 million shares and mutual fund units with turnover value of Tk 1.19 billion during the week.

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