Stocks pass third week in red

Stocks declined for a third week amid low turnover as investors went for panic sell-offs fearing a further fall in the market.

The benchmark general index, DGEN of Dhaka Stock Exchange, retraced 0.75 percent or 47.04 points, to end the week at 6,212.86. The blue-chip index, DSE-20, declined 0.83 percent or 34.67 points.

“Last week's volume of transactions was low,” said Prof Mahmood Osman Imam, a finance teacher at Dhaka University. “It was unusual.”

The regular should pay attention to why turnover declined dramatically, said Imam, also a member of the index development committee of DSE.

Imam said merchant bankers should opt for better management for discretionary account and portfolio management. Institutional investors were largely inactive and watching the market cautiously, he said.

Supply of initial public offerings also needs to be increased to stabilise the market as early as possible, he added.

Turnover stood at Tk 2,540 crore, 54.6 percent lower form the previous week's turnover of Tk 4,419 crore.

The week witnessed five trading sessions, two sessions gained while the other three lost. DGEN advanced 0.81 percent in the last session of the week.

Index and turnover both have experienced continuous fall as investors went for panic sell-offs following the news of the moves taken by the regulator and the Anti Corruption Commission to file cases agai-nst market manipulators, said an analyst.

The country's opposition parties said it would give a boost to an anti-government campaign after Ramadan, protesting the re-cent constitutional amendment, he added.

Grameenphone, which represents the telecom sector, gained 4.09 percent following the news that the government have finalised licence renewal fees for mobile operators at Tk 150 crore for per megahertz of airwave.

Lafarge Surma Cement gained 4.81 percent following the news that their Indian subsidiary has started mining operations in a limestone mine in Meghalaya.

The telecom sector was the top gainer last week, while banks added 1.09 percent and cement 0.83 percent.

All other sectors retraced: non-bank financial institutions lost 1.32 percent, general insurance 1.37 percent, life insurance 1.84 percent, pharmaceuticals 1.20 percent, fuel and power 2.92 percent and textiles 1.92 percent.

Beximco topped the turnover leaders with 71.28 lakh shares worth Tk 121 crore changing hands.

City Bank was the biggest gainer of last week, posting a 7.42 percent rise, while Federal Insurance was the worst loser, plummeting by 55.31 percent.

Source: Daily Star