Stocks extend losses into second week

Stocks on the Dhaka bourse extended their losing streak for the second consecutive week, as profit booking followed the previous week's significant gains driven by some blue-chip and banking sector stocks.

In the last two-week period, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE) lost 93 points or around 1.7% to close at 5,350 on Thursday.

From 10 to 14 August, market capitalisation — the total value of all outstanding company shares — fell by Tk3,396 crore to Tk7.11 lakh crore, down from Tk7.15 lakh crore the previous week, according to the DSE weekly report.

However, the total turnover fell by 5% to Tk3,445.94 crore while average turnover fell by 24% to Tk689.19 crore as market participation became subdued.

Block market turnover was Tk128.97 crore, and SME stocks turnover was Tk24.93 crore, the DSE data showed.

Amid the profit-booking pressure, most of the stocks or 274 scrips saw price decline, while 99 advanced, and 23 remained unchanged.  

The DSE report showed that the pharma and chemical sectors contributed the largest share of average trading value at 17.04% (Tk117 crore), followed by the banking sector at 14.08% (Tk96.98 crore) and the textile sector at 11.85%.

Standard Ceramics, a Z category stocks, led the weekly top gainer chart as its return was 36.31% to Tk97.60 each, followed by Beximco Sukuk by 20.41% to Tk59 each, Dominage Steel by 19.35% to Tk14.80 each.

While, AIBL 1st Islamic Mutual Fund, A category stock, led top loser lists as its unit price fell by 14.55% to Tk4.70 each in the previous week, followed by SEML Lecture fund by 12.66% to Tk6.90 each, and Social Islami Bank by 11.54% to Tk6.90 each.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse extended its correction for the second consecutive week as investors preferred to continue short-term profit-booking.

The market commenced the week amid a profit-taking sell frenzy, which persisted for four consecutive trading sessions.

However, cautious bargain hunting in selective large-cap stocks during the final session revived buying interest to some extent, leading the benchmark index return into positive territory, the commentary reads.