Babul Barman

Stocks in the local markets closed higher for the fourth straight week that ended Thursday with the turnover value improving significantly as investors injected fresh funds into the market amid optimism.

The market witnessed five trading sessions as usual in the week. The benchmark index of the Dhaka Stock Exchange (DSE), DGEN, gained 84.27 points in four of the sessions and declined by 5.62 points in the other session.

The DSE General Index (DGEN) surged by 78.65 points or 1.82 per cent week-on-week to close at 4,396.84 points.

The DSE Broad Index (DSEX) ended at 4,304.97 points after a gain of 105.38 points or 2.51 per cent. The DSE-30 Index (DS30) also gained 27.43 points or 1.80 per cent to close at 1,551.97 points.

On the other hand, the Chittagong Stock Exchange (CSE) also ended higher with the CSE Selective Category Index going up by 235.13 points or 2.81 per cent to close at 8,575.59 points.

The turnover was improving gradually amid increased participation of both individual and institutional investors. The turnover in each session of the week was above Tk 4.0 billion.

The total DSE turnover last week was recorded at Tk 23.31 billion, which marked a rise of 52.22 per cent from the previous week's total value of Tk 15.31 billion.

The daily average turnover value last week increased by 52.22 per cent to Tk 4.66 billion from the previous week's average of Tk 3.06 billion.

"The market continued to maintain the gaining streak for the fourth straight week as participation of investors increased immensely during the week, with the increasing liquidity in the money market and foreign fund flow," commented the LankaBangla Securities in its weekly market analysis.

Moreover, the ameliorating economic data boosted the investors' bullish sentiment, the stock broker said.

Export growth for the period of July-January of the fiscal year 2012-13 was 8.83 per cent compared to the corresponding period of the previous year. The forex reserve stood at US$ 13.38 billion last week against $12.90 billion in the previous week. Conversely, the import growth remained in the negative territory.

"Overall situation is reckoning that more fund flow is inevitable to the market in forthcoming days," the stock broker added.

"Amid profit taking in the mid-week session, the week ended more than 78 points up amid optimism," stated the IDLC Investments.

"Turnover crossed Tk 5.0 level for the first time in 2013 and broke a 5-month high since October 14, 2012. While lower valuation level and upcoming corporate declarations created scrip-based movements, investors were more cautious than before to put their investment in stocks," it added.

"Declining inflation rate coupled with central bank's intention to increase money flow into the economy is boosting the market activity gradually," the LankaBangla Securities said.

"Overall investment scenario improved, many investors also went for taking position afresh, pushing up turnover by 52.22 per cent over the last week," a merchant banker said.

Most of the sectors saw their trade volumes go up significantly as the investors made fresh investments throughout the week.

All the major sectors gained in the week except telecommunications which lost 0.97 per cent. The fuel and power sector continued to post the highest gain with 2.78 per cent. It was closely followed by NBFIs with 2.64 per cent. Pharmaceuticals and banks gained 1.82 per cent and 0.79 per cent respectively during the week.

Of the total 285 issues traded during the week, 215 advanced, 55 declined and 15 remained unchanged.

The market capitalisation of the DSE increased by 1.47 per cent, as it was Tk 2,443.78 billion on the opening day of the week and at the end of the week it stood at Tk 2,479.70 billion.

Four listed companies-Prime Finance First Mutual Fund, Bangladesh Shipping Corporation (BSC), RAK Ceramics and GrameenPhone-made corporate declarations in the week.

The United Airways topped the list of the week's turnover leaders with shares worth Tk 1.86 billion changing hands.

The next other nine turnover leaders were Summit Purbanchol Power Company, RN Spinning, Unique Hotel and Resorts, Beximco Limited, Generation Next Fashion, Envoy Textile, Sunlife Insurance, Saiham Cotton Mills and Bangladesh Shipping Corporation.

The Summit Purbanchol Power Company topped the week's gainers chart posting a rise of 25.16 per cent. It was followed by Summit Alliance Port, Aamra Technologies, Green Delta Insurance, National Housing and Finance, Zahintex Industries, Quasem Drycell, Envoy Textile and Generation Next Fashion.

The week's worst losers included Gemini Sea Food, Second ICB, Sixth ICB, FAS Finance, Popular Life Insurance, EBL NRB Mutual Fund, National Tea, The IBN SINA, Midas Financing and Kohinoor Chemicals.