Stocks keep winning streak for fourth week

Dhaka,  Thu,  21 September 2017
Published : 14 Jul 2017, 21:44:54
Weekly analysis

Stocks keep winning streak for fourth week

Core index, market cap hit record high
Stocks keep winning streak for fourth week
Babul Barman

Stocks extended the winning streak for the four straight weeks that ended Thursday as investors continued to show their buying appetite on large-cap stocks amid optimism.

Market insiders said investors' enthusiasm sustained as local and foreign investors remained active in the market amid optimism, taking the daily average turnover for the week to Tk 11.38 billion.

"Waning interest rate on bank deposit, possible rate cut on saving instruments coupled with optimism of June closing earnings and dividend declarations continued to prompt investors to put fresh stakes on stocks," said an analyst.

However, he advised the investors to invest carefully in a rising market and should analyse the fundamentals of securities beforehand.

The week featured five trading sessions as usual. Of them, four sessions closed higher while one faced correction.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back , went up by 53 points or 1.48 per cent to settle at 5,835, the highest level of DSEX since its inception on January 27, 2013.

Along with the prime index, the total market capitalisation of the DSE also reached to an all-time high of Tk 3,918 billion at closing day of the week, surpassing the previous high of Tk 3,893 billion recorded on Tuesday.

The two other indices -- the DS30 index and the DSE Shariah Index (DSES) - also followed the suit to close at 2,131 and 1,327 points, after advancing nearly 28 points and 20 points respectively.

The DSE Shariah Index also finished the week at the highest level since its introduction on January 20, 2014.

The port city bourse, Chittagong Stock Exchange (CSE), also finished higher with its Selective Categories Index, CSCX, soaring 163 points or 1.51 per cent to settle at 10,939.

"The optimistic sentiment of the market, low bank interest rate on deposit, possible interest rate cut on saving instruments turned the market more lucrative for the investors," commented International Leasing Securities, a stockbroker, in its weekly market analysis.

The stockbroker noted that June closing earnings and dividend declarations also allured the sideline investors to inject fresh funds into the market.

"Buoyancy of shares mostly from telecom, bank, food and cement sectors contributed to the upsurge in indices last week," the stockbroker said.

The total turnover for the week rose to Tk 57 billion on DSE, against Tk 53 billion in the week before.

The daily turnover averaged at Tk 11.38 billion, which was 7.0 per cent higher than the previous week's average of Tk 10.59 billion.

Textile sector kept dominance in turnover chart, grabbing 18 per cent of the week's total turnover value, followed by bank 15 per cent and pharmaceuticals 14 per cent.

EBL Securities, said, "Throughout the week investors remained optimistic amid strong participation. Investors kept up their hope as market is going through a positive vibe".

The stockbroker noted that investors opted for taking position in large-cap stocks and remained buoyant over stocks from bank and telecommunication sectors.

All large-cap sectors remained positive expect non-bank financial institutions which faced 1.17 per cent correction.

Telecommunication sector posted the highest gain of 7.07 per cent, followed by bank 2.77 per cent, food & allied 2.69 per cent, engineering 1.13 per cent, fuel & power 0.20 per cent and pharmaceuticals 0.07 per cent.
Editor : A.H.M Moazzem Hossain
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