Weekly market review: Profit-booking pulls stocks down
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Stocks saw a moderate correction in the outgoing week, snapping a four-week winning streak, as cautious investors opted for profit-booking on quick-gaining shares.Market experts said investors preferred to realize some gains as well as rebalance their portfolios based on the latest quarterly earnings declarations.Most of the listed companies published their quarterly earnings during the week and investors acted on those accordingly.However, shares of some multinational companies (MNCs), which remained stuck at floor prices for long, tried to move upward during the week as the foreign exchange market eased to some extent, which is a good sign for the market.Heidelberg Cement, for example, soared 29.78 per cent, becoming the week s top gainer to close at Tk 321.60 on Wednesday.The recent margin loan relaxation by the Bangladesh Securities and Exchange Commission (BSEC) contributed to some buy pressure on selective stocks during the week but failed to offset the losses.The week saw only three trading days as the market remained closed on Monday due to May Day and on Thursday on the occasion of Buddha Purnima. Two days closed lower while one saw modest gain.DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down 4.88 points to settle the week at 6,269.16, after gaining 68 points in the past four straight weeks.The total turnover stood at Tk 24.08 billion, down from 29.98 billion in the week before as this week saw only three trading days while the previous week four trading days.The average daily turnover, however, jumped to Tk 8.03 billion, a 7.08 per cent increase over the week before.The investors preferred to book some quick gain, said International Leasing Securities, adding that the sell-offs in major sectors after the recent price upsurge led the benchmark index to close in the red.As the results of quarterly earnings began to flow into the market, investors increased their holdings in those stocks that surpassed their expectations but dumped those stocks that fell short of expectations, said EBL Securities.Moreover, some investors followed a cautious stance due to the deterioration of major macroeconomic indicators in April, said the stockbroker. Portfolio rebalancing as well as the short-term profit-booking tendency by the investors led the market to get dominated by the sellers and experience losses this week, said the EBL analysis.The investors enthusiasm remained in the cement, food & allied, paper & printing, and bank sectors. Food sectors accounted for 18 per cent of weekly turnover, followed by IT (14 per cent) and travel & leisure (10 per cent).Most of the stocks stayed unmoved due to limited liquidation opportunities. Of the issues traded, 81 declined, 69 advanced and 231 remained unchanged.Eastern Housing became the weekly turnover leader, with shares worth Tk 1.35 billion changing hands, followed by Unique Hotel and Resorts (Tk 1.23 billion), Olympic Industries (Tk 1.01 billion), Lafarge Holcim Bangladesh (Tk 730 million) and Sea Pearl Beach Resorts (Tk 725 million).The DS30 Index, which consists of blue-chip companies, also dropped 3.83 points to 2,204. However, the DSES Index, which represents Shariah-based companies, gained 4.47 points to 1,367.The Chittagong Stock Exchange (CSE), however, ended marginally higher with its All Share Price Index (CASPI) rising 15 points to settle at 18,481 and the Selective Categories Index (CSCX) gaining 5 points to close at 11,069.The port city s bourse traded 6.63 million shares and mutual fund units with turnover value of Tk 266 million during the week.