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Sector

Monthly Return

Paper & Printing

9.62%

Travel & Leisure

3.70%

Jute

2.08%

Miscellaneous

1.66%

Life Insurance

-0.35%

Cement

-0.69%

Tannery

-1.07%

Mutual Fund

-2.04%

Pharmaceuticals

-2.09%

Fuel & Power

-2.19%

IT Sector

-2.21%

Gen. Insurance

-2.63%

Textile

-4.06%

Telecommunication

-4.55%

Engineering

-4.67%

Food & Allied

-4.69%

Bank

-5.68%

Service & Real Estate

-6.47%

NBFI

-8.22%

Ceramic

-8.27%

Source:  DSE & LBSL Research

Advanced & Declined

Trailing P/E

104

8

222

Jan'18

Feb'18

16.86

17.57

Losers

Gainers

Unchanged

Change in Indices (Feb '18)

Source:  DSE & LBSL Research

-3.89%

-4.13%

-2.68%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

DSEX

DS30

DSES

continued to experience major sell-offs throughout the month. To 

be precise, index lost ~234.81 points in the month. During previous 

month, index had moved 3.28% in the red as well. This month, 

market saw major correction in the financial stocks from Bank and 

NBFI sector as the banks drove up the interest rate to source deposits. 

The concerns regarding the liquidity situation in the banking system 

caused institutional and retail investors alike to exit the financial 

sector. Although banks and NBFI took the brunt of the sell-off, large 

cap stocks in Food & Allied, Telecommunications also saw major 

decreases, possibly caused by high net foreign and instituional 

sale in three blue chip stocks: GP, BATBC and OLYMPIC. The 

Shariah index, DSES (which do not include any traditional financial 

institutions) also fell by 2.68%. DSES was actually up by 0.56% in 

January. This further illustrates non-financial stocks being impacted 

by the index fall. Net foreign investment during the month went into 

the negative with 41.12% MoM decrease in foreign buys.
Among major economic update, the central bank extended the 

deadline for the banks to adjust their Advance Deposit ratios (ADR) 

to December 31, 2018. On January 30th, Bangladesh Bank had issued 

a directive to set lower limits on ADR levels, to be implemented 

within June 30, 2018. This was one of the major catalysts in negative 

market sentiment in January. But the extension of deadline could 

not restore investor confidence. Also, Dhaka Stock Exchanges 

received two proposals for a 25% stake in the exchange as a strategic 

investor from two consortiums: a Chinese one and an Indian one. 

DSE’s board preferred the Chinese bid because of higher pricing. 

There were talks of regulators preferring the Indian consortium's 

offer due to India’s experience with demutualized exchanges. This 

also impacted investor confidence negatively. Eventually, The DSE’s 

board of directors confirmed the decision favoring the proposal of 

the Chinese consortium.
LANKABAFIN led the monthly top turnover list, followed 

by SQURPHARMA, GP, UNIQUEHRL, BXPHARMA and 

MONNOCERA.

Market Return (DSEX)

Source:  DSE & LBSL Research

February ’18

-3.89%

January '18

-3.28%

Among major sectors, there was no sectors 

with positive return in Feb’18, while NBFI, 

Banks and Food & Allied sectors saw 

the largest decreases with 8.22%, 5.68% 

and 4.69% respective losses in market 

capitalization. 

The private sector credit achieved growth of 18.36% 

in Jan’18 exceeding the upgraded monetary policy 

target of 16.8%. Private credit growth has now 

exceeded the MPS target for the seventh time in a 

row. In January, the central bank upgraded private 

sector credit growth expectation to 16.8% (from 

16.3%) for FY18.

MONTHLY MARKET WRAP-UP FEBRUARY 2018