Stocks see robust week after Eid vacation

Dhaka,  Monday,   2016-09-23
Published : 23 Sep 2016, 21:18:32
Weekly market review

Stocks see robust week after Eid vacation

Trading on bourses remains open today
Stocks see robust week after Eid vacation
Babul Barman


Stocks finished higher last week that ended Thursday, the first week after prolonged nine-day Eid vacation, as optimistic investors took position on some large-cap stocks.

Analysts said the market maintained the upward trend for two consecutive weeks as enthusiastic investors were in buying mood on large-cap stocks, taking the benchmark index to eight months high.

"The merchant bankers' proposal to create a special fund to prop up stocks by increasing money supply to the capital market also created hype among the investors," said an analyst at a leading brokerage firm.

The leaders of Bangladesh Merchant Bankers Association (BMBA) on Tuesday sought a Tk 60 billion special fund from the government to increase money supply to the capital market, which is suffering from high volatility since the market debacle in early 2011.

He said the market witnessed significant rise in turnover as big investors including some global fund managers were also active in the market ahead of corporate declarations of June ending companies.

Another stockbroker said the market remained vibrant following the news that some foreign and local renowned companies have shown interest to invest in the premier bourse to become the strategic partners.

"As a result, turnover, an important indicator of the market, hit an eight-month high to Tk 6.14 billion on Wednesday, while daily average turnover for the week stood at Tk 5.12 billion," he said.

Meanwhile, trading will remain open on the bourses today (Saturday) in line with all government offices including financial institutions, DSE said in a statement.

The week witnessed five trading sessions as usual and all five trading sessions closed positive.

Week-on-week, DSEX, the benchmark index of the DSE, went up by 64.26 points or 1.40 per cent to finish the week at eight months high at 4,665.35. It was the highest level of DSEX since January 20 last.

LankaBangla Securities, a stockbroker, said, "The upward movement in the market, which started before Eid vacation, continued last week as well, resulting in 64 points increase in benchmark index DSEX".

"Such scenario indicates investors' optimism about the stock market," said the stockbroker.

The stockbroker noted that though some of the high cap shares were the turnover leaders, the list of top gainers were dominated by small cap stocks and mutual funds.

The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 11.36 points or 0.65 per cent to settle at 1,771.02. The DSE Shariah Index surged 11.84 points or 1.07 per cent to close at 1,120.50.

The port city bourse, Chittagong Stock Exchange (CSE) also finished higher with its Selective Categories Index, CSCX, advancing 110.17 points or 1.28 per cent to close at 8,727.36.

The total turnover for the week stood at Tk 25.51 billion on the premier bourse which was Tk 23.61 billion in the week before.

The daily turnover averaged Tk 5.12 billion, registering an increase of 8.43 per cent over the previous week's average of Tk 4.72 billion.

Engineering emerged as turnover leader, capturing 22 per cent of the week's total turnover value, followed by pharmaceuticals and fuel and power, grabbing 15 per cent and 13 per cent respectively.

"The market has surged following fresh investment and maintained its vibrant mode amid buying spree," said Asian Tiger Capital Partners, an asset management company, in an analysis.

International Leasing Securities, a stockbroker, said, "The bullish  spell  throughout  the  week  was  observed  due  to  the  active  participation  of enthusiastic  investors,  who  took  fresh  positions  in  few  fundamental  stocks".

The gainers took a strong lead over the losers as out of 327 issues traded, 192 closed higher, 101 higher and 34 remained unchanged on the DSE trading floor last the week.

Three listed companies -United Power, Navana CNG and ACME Laboratories recommended dividend last week for the year ended on June 30, 2016.

The total market capitalisation of the DSE also rose 0.99 per cent last week as it was Tk 3,232.38 billion on the opening day of the week and it stood at Tk 3,264.29 billion on closing day of the week.

ACME Laboratories dominated the week's turnover chart with about 11.06 million shares worth Tk 1.20 billion changing hands, followed by Square Pharmaceuticals Tk 1.01 billion, Lafarge Surma Cement Tk 843 million, Shahjibazar Power Company Tk 752 million and Bangladesh Submarine Cable Company Tk 744 million.

National Housing Finance and Investment was the week's best performer, posting a gain of 30.09 per cent while Modern Dyeing was the worst loser, slumping by 14.09 per cent.

A new issue - Yeakin Polymer-- made a stellar trading debut Thursday as its share price jumped 218 per cent to close at Tk 31.80 each on the DSE and 213 per cent to close at Tk 31.30 on the CSE from its issue price of Tk 10 each.

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