Stocks end week lower as investors remain cautious

Stocks ended the week lower as investors remained cautious over the weak quarterly earnings declarations by some listed firms and mutual funds.

DSEX, the benchmark index of the Dhaka Stock Exchange, declined 14.88 points or 0.32 percent, before finishing the day at 4,564.48 points.

The bourse started with a positive note, crossing the 4,600-point level within the first hour of trading as investors opted for attractive stocks, IDLC Investments said.

“But, the investors lost poise over the sustainability of the market at that level, as DSE news board was flooded with lower-than-expected earnings declared by several companies,” the merchant bank said.

Some 30 equity firms yesterday announced their quarterly statements, 13 of which posted higher growth and 17 saw lower incomes. On the other hand, 11 mutual funds declared their quarterly results, of which only two posted higher growth and the remaining nine witnessed lower earnings.

LankaBangla Securities said the index remained under pressure amid volatility. “The day's weakness came from the selling pressure in fuel and power, pharma and other heavyweight fast moving consumer goods stocks.”

“Such sluggish trend in the market can primarily be ascribed to month-end adjustment in portfolio,” the stockbroker added.

Turnover, another important indicator of the market, however, jumped 73.7 percent to Tk 456.04 crore with 14.67 crore shares and mutual fund units changing hands on the DSE.

Of the traded issues, 114 advanced and 151 declined, while 54 securities closed unchanged.

Khulna Power Company dominated the turnover chart with 25.07 lakh shares worth Tk 18.41 crore changing hands, followed by Square Pharma, Shahjibazar Power Company, Ifad Autos and ACI.

Among the major sectors, fuel and power lost 0.88 percent in market capitalisation, followed by food and allied that declined 0.53 percent, engineering 0.33 percent and textiles 0.08 percent.

Conversely, cement and banking sectors were up by 0.36 percent and 0.32 percent respectively.

Samorita Hospital was the day's best performer with a 9.98 percent gain, while Savar Refractories was the worst loser, shedding 14 percent.

Chittagong stocks also fell yesterday with the bourse's benchmark index, CSCX, declining 21.28 points or 0.25 percent to finish the day at 8,491.62 points.

Losers beat gainers as 123 declined and 70 advanced, while 41 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 86.15 lakh shares and mutual fund units worth Tk 26.59 crore in turnover.