Stocks go bearish

The bearish trend was quite visible in the market last week with stock prices falling for a fourth consecutive week.
The benchmark index of the Dhaka Stock Exchange, DSE General Index, fell 19.96 points, or 0.82 percent to 2,408.67 on week-on-week. The DSE All Share Price Index also declined 17.64 points, or 0.87 percent to 2,001.88 on Thursday, the last trading day of the week.
With little institutional presence in the market, the trading seems to be dominated by retail investors, according to an analysis of Equity Partners Limited (EPL), an investment bank.
“Retail investors hold shares for a short period and this practice is not allowing the prices to go upward,” the EPL analysis said.
It said along with falling share prices, the turnover figures also seemed to fall.
Dhaka stocks closed steady in a heavily fluctuating market on Sunday, the opening day of the week. On Monday stocks soared, riding on banking stocks. However, losers outnumbered the gainers on the day.
Stocks closed lower on Tuesday after the previous day rally. Most of the banking sector shares experienced corrections and nosedives in prices. Power, textile and insurance performed well.
On Wednesday, the market declined for the second consecutive day. On the week's last day, the index fell slightly.
Riding on Monday's gain, banking was the week's best performer with a gain of 8 percent. However, this came at the expense of other sectors. General insurance and paper and printing fell by 12.18 percent and 11.18 percent respectively.
Non-banking financial institutions and investments also lost 7.18 percent and 7.59 percent. Most other sectors either gained or remained unchanged.
The EPL analysis said: “This is a welcome effect as we can see investors moving away from the junk shares into ones that are more backed by fundamentals.”
It said as there are fears of global crisis fallout on Bangladesh in future, the government moves to steps to protect the economy.
Recently the government has decided to put a cap on bank lending rates to 13 percent. Such rate cut excludes loans on credit cards and retail loans. With lower lending rates, deposit rates have also come down.
“This could have a positive impact on investment and help the country sustain the financial crisis without many hiccups,” the EPL said.
The total and daily turnovers however rose by 19.99 percent to Tk 2,128.92 crore and Tk 425.78 crore.
A total of 13,07,92,874 shares were traded on the premier bourse last week, a 20.22 percent higher than the previous week. Of the traded securities, 72 advanced, 186 declined and one remained unchanged.
Market capitalisation fell by 0.67 percent to Tk 98,910.91 crore.
Summit Power topped the turnover leaders with 15,90,150 shares worth Tk 191.24 crore traded, which was 8.9 percent of the total turnover.
The other turnover leaders were Beximco, Powergrid, Shinepukur Ceramics, S Alam Cold Rolled Steels, Titas Gas, Desco, Beximco Pharma, Eastern Housing and Summit Alliance Port.
Chittagong stocks however marked a rise last week. The CSE Selective Categories Index increased by 0.63 percent to 4,912.38. The CSE All Share Price Index rose by 0.42 percent to 7,599.5.
A total of 2,69,79,592 shares worth Tk 287.67 crore changed hands on the Chittagong Stock Exchange. Of the traded scrips on the port city bourse, 69 advanced, 114 declined and four remained unchanged.
Beximco topped the turnover leaders on the CSE with 12,21,494 shares worth Tk 28.51 crore traded.