Stock market turned more risky last week

The stock market witnessed a declining trend throughout the last week when perceived higher risk generated selling pressure much more than previous weeks, according to a research agency.

In the last week, market capitalisation dropped by 0.64 percent with a decline in trading by 9.26 percent and turnover by 4.42 percent.

Research and Innovation Lab (RIL) says in its weekly market analysis that last week found many investors in a mood to sell off.

The agency said investors could not gain in the week, when, according to it, they had to sustain losses.

The loss on investment was 0.35 unit against 1 unit of risk, which is 1.21 times higher than in the previous week.

In the week, the broad index declined by 0.05 percent (2.47 points) at 0.48 percent market risk.

The advanced-decline ratio (AD ratio) regressed from 0.99 to 0.96 reflecting a declining trend in the market, according to RIL.

It said though the market was bearish in the week, market capitalisation of multinational companies (MNC) rose to 34.44 percent from 34.23 percent.

Sector Performance

P/E (price earning) ratios of jute (105.10) and paper and printing (51.57) sectors were the highest among all stocks reflecting higher demand for the shares of the sectors.

Despite having higher P/E ratio, investors in the sector sustained 1.41 percent loss in the week.

RIL said investors should be extremely cautious while investing in securities of the sector as it carries higher degree of risk.

Top scrips

In the last week, the top five stocks by return generation were LIBRAINFU (34.4%), GEMINISEA (32.2%), APEXFOODS (30.30%), FUWANGCER (22.2%) and ARAMIT (14.1%), and the worst five scrips by return generation were ITC (-22.3%), DACCADYE (-21.4%), BDAUTOCA (-15.9%), ALLTEX (-15.9%) and AZIPIPES (-13.4%).

The top five securities based on volatility and fluctuation in prices were BATBC (65.90), LINDEBD (46.81), GEMINISEA (44.92), LIBRAINFU (44.61) and EASTRNLUB (39.93).

The top five stocks by turnover in terms of value were SQURPHARMA (4.33%), CITYBANK (3.83%), BXPHARMA (3.30%), APOLOISPAT (2.70%) and ITC (2.63%) while the top five by turnover in terms of volume  were UNITEDAIR (6.42%), CITYBANK (5.51%), APOLOISPAT (4.70%), FUWANGCER (3.52%) and ALLTEX (3.03%).

The top stocks by market capitalisation are GP (11.05%), BATBC (5.65%), SQUARPHARMA (5.18%), LAFSURCEML (2.64%) and RENATA (2.11%) while top traded stocks are ITC (17893), CVOPRL (11651), ALLTEX (10589), EMERALDOIL (10234) and UNITEDAIR (10005).

Stocks of several companies such as ITC were traded in a large volume though there was no price-sensitive information.

How market may behave next week

Analysing the market in the last few weeks, RIL said it might remain volatile to some extent in the next week, when investors should be cautious before investing.

Fluctuations in indices in the next week may remain more or less the same as the last week and profit-booking may not be very easy, it said.

The agency said investors should focus more on protecting their investment taking extra care of risk, rather than aiming for high returns.