Dhaka stocks snap 5-week gain on portfolio rebalancing

Staff Correspondent | Updated at 11:53pm on September 08, 2018

Dhaka stocks in the past week ended a five-week gaining streak because of investors’ rebalancing of their portfolios and profit taking share sales.
DSEX, the key index of Dhaka Stock Exchange, dropped 0.47 per cent, or 26.39 points, over the week to finish at 5,574.25 points on Thursday, the last trading session of the week.
DSEX had gained 296 points in the previous five weeks.
Share trading on DSE was shortened to four sessions in the past week due to a public holiday on September 3 on the occasion of Janmashtami.
DSEX was in the negative territory in the first two sessions of the week as investors went on profit taking share sales after the recent rise of the prices.
The key index returned to the positive note amid the completion of purchase of 25 per cent of DSE stakes by a Chinese consortium of Shanghahi and Shenzhen stock exchanges.
The Chinese group became the strategic partner of the Bangladesh’s premier bourse and entered into the DSE board.
Overall, DSEX ended in negative territory in the week as many of the investors’ rebalanced their portfolios by purchasing power sector scrips and selling bank, non-bank financial institution and textile sector scrips, said market operators.
Share prices of bank and non-bank financial institution sectors, which have the biggest capitalisation on DSE, dropped by 3.5 per cent and 1.4 per cent respectively in the past week.
Investors are still skeptical about the country’s financial market because of the loan scams.
Share prices of miscellaneous, textile and food sectors also dropped by 1.4 per cent, 0.8 per cent and 0.5 per cent respectively after gains in the previous week.
Share prices of energy, telecommunication, cement and engineering sectors advanced 4.1 per cent, 3.2 per cent, 2.7 per cent and 2.5 per cent respectively that saved the market from further fall.
Many of the investors, especially the foreign investors, remained watchful about the country’s political situation ahead of the next general elections.
Some of the investors also might have accumulated cash by selling shares from their possessions ahead of the debut of VFS Thread Dyeing Limited.
The trading of VFS will commence at DSE today.
The daily average turnover on the bourse increased by 30.74 per cent to Tk 763.46 crore in last week from Tk 583.94 crore in the previous week.
Out of the 339 traded issues, 216 declined, 108 advanced and 19 issues remained unchanged.
DS30, the blue-chip index of the DSE, also lost 0.11 per cent, or 2.19 points, to close at 1,958.53 points over the week.
Shariah index DSES, however, added 0.71 per cent, or 9.05 points, to close at 1,278.66 points.
Khulna Power Company led the turnover chart with its shares worth Tk 254.74 crore changing hands.
BBS Cables, Confidence Cement, Aman Feed, The Peninsula Chittagong, United Power Generation & Distribution Company, Active Fine Chemicals, Nahee Aluminum, Unique Hotel and Resort and Summit Power were the other turnover leaders.
Khulna Power Company gained the most in the week with a 29.91 -per cent increase in its share prices, while Savar Refractories was the worst loser, shedding 21.01 per cent.