Stocks end higher for 4th straight week

Dhaka,  Sun,  04 December 2016
Published : 25 Nov 2016, 21:11:25
Weekly market review

Stocks end higher for 4th straight week

Turnover jumps 29pc on premier bourse
Babul Barman


Stocks extended their winning streak for the fourth consecutive weeks that ended on Thursday with key index of the Dhaka Stock Exchange (DSE) reaching nearly 14 months' high.

Stocks end higher for 4th straight weekAnalysts said the market maintained the upbeat trend with soaring turnover as favorable macro-economic indicators coupled with steady market scenario lured the sideline investors to take fresh position, especially on the financial stocks.

"The stock market passed a remarkable week with higher participation of investors as favorable market fundamentals promoted optimistic investors to hold onto buying spree, taking the key index to 14-month high," said an analyst at a leading brokerage firm.

The week witnessed five trading sessions as usual. Of them, four sessions closed higher while the remaining one closed almost flat.

Weak-on-week, the prime index of the Dhaka Stock Exchange (DSE), went up by 92.79 points or 0.97 per cent to finish the week at 4,791.33, which was the highest level of DSEX since October 7 last year when DSEX was 4,800.62.

The two other indices also closed higher. The DS30 index, comprising the blue-chips, advanced 11.08 points or 0.63 per cent to settle at 1,769.53. The DSE Shariah Index rose 10.57 points or 0.94 per cent to close at 1,133.27.

The port city bourse, Chittagong Stock Exchange (CSE), also ended higher with its Selective Categories Index, CSCX, soaring 156.55 points or 1.78 per cent to close at 8,962.29.

The total turnover for the week jumped to Tk 39.77 billion against Tk 30.91 billion in the week before, riding on huge block transaction of Khulna Power Company Limited (KPCL) on Wednesday.

Riding on the huge block transaction of KPCL, the average daily turnover during the week soared nearly 29 per cent to Tk 7.95 billion, which was Tk 6.18 billion in the week before.

Engineering sector led the week's sectoral turnover chart, capturing 16 per cent of the week's total turnover value, followed by bank 14 per cent and textile 12 per cent.

"The turnover surged substantially, driven by block trade of Tk 8.28 billion of KPCL, on the fourth session of the week, which was nearly 21 per cent of the week's total turnover value," said a stockbroker.

LankaBangla Securities, a stockbroker, said, "Overall sentiment of the market is positive and the index is likely to continue gain until the next resistance level."

The stockbroker noted that the week marked by two very vital events for the market - firstly, DSEX broke a strong resistance at 4,720-level on its way to the year's highest and secondly, it witnessed the highest daily turnover of Tk 14.78 billion in five years' time.

City Bank Capital, a merchant bank, said, the bullish sentiment of the market was also reflected on turnover activity and as such the weekly average turnover saw a massive improvement.

"The optimistic investors' excitement about the market remained positive amid releasing of the first quarter corporate earnings where some mid-cap and small-cap stocks attracted the investors," said International Leasing Securities.

EBL Securities, a stockbroker, said, "The investors' sentiment regarding the market remained optimistic that continued throughout the week for position taking on sector-specific stocks at favorable price level."

Only one listed company - Ambee Pharmaceuticals recommended 26 per cent cash dividend for the 18 months period from January 01, 2015 to June 30, 2016.

The gainers took a strong lead over the losers as out of 328 issues traded, 227 closed higher, 88 lower and 13 remained unchanged on the DSE trading floor last week.

The total market capitalisation of the DSE also rose 1.23 per cent last week as it was Tk 3,284.88 billion on the opening day of the week and it stood at Tk 3,325.13 billion on closing day of the week.

AB Bank dominated the week's turnover chart with 38.25 million shares worth Tk 840 million changing hands, closely followed by Beximco Limited Tk 837 million, Doreen Power Tk 687 million, Square Pharmaceuticals Tk 658 million and Bangladesh Building Systems Tk 609 million.

Dragon Sweater and Spinning was the week's best performer, posting a 31 per cent gain, while National Polymer was the worst loser, slumping by 16 per cent.

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