The Financial Express

Weekly stock market review: Shares keep gaining as financial stocks soar

DSEX gains192 points in four straight sessions

| Updated: August 26, 2018 15:22:48

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Stocks extended their winning streak for the fourth straight week that ended on Monday, in the short week before Eid holidays.

Brokers said the market passed another positive week as optimistic investors took position on financial stocks amid post-Eid positive expectations.

"The rally was largely supported by heavyweight banking and non-bank financial institutions which posted more than 4.0 per cent gain each," said a leading broker.

The non-bank financial institutions posted the highest gain of 5.61 per cent as 22 issues of the sector closed higher, out of 23.

It was followed by banking sector with 4.73 per cent return as prices of 28 banks soared, out of 30 listed banks.

"The banking sector kept gaining as some of the banks posted good profit in the second quarter, leading investors to channel some of their money into the banking stocks," said an analyst.

The consolidated earnings per share (EPS) of a half of the listed banks increased during the January-June 2018 period.

The week consisted of only two trading days due to Eid holidays. The market opened with optimism in the week and it continued till the end.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 103 points or 1.89 per cent to settle at 5,571.

The DSEX added more than 192 points in the past four straight sessions before Eid-ul-Azha vacation.

"The significant positive movement in the index is mainly driven by upward movement in the banking and non-bank financial institutions sectors," commented LangkaBangla Securities.

Two other indices also ended higher. The DS30 index, comprising blue chips, advanced 32.89 points to finish at 1,948 and the DSE Shariah index rose 10.74 points to end at 1,257.

According to International Leasing Securities, the enthusiastic investors kept on taking position on financial issues amid post-Eid optimism which helped the prime index cross 5,500 points.

The stockbroker noted that the securities regulator suspended share trading of three low-profile companies due to unusual price hike and sent five more to spot trading. This help drive some investors towards the financial sector stocks.

Turnover, another indicator of the market, fell to Tk 10.05 billion from Tk 26.27 billion in the week before as the last week saw only two trading days instead of previous week's four.

The daily turnover averaged Tk 5.05 billion, which was 23.44 per cent lower than the previous week's average of Tk 5.56 billion.

The heavyweight banking sector topped the week's turnover chart, grabbing 28 per cent of the week's total turnover. It was followed by financial institutions with 16 per cent and textile 15 per cent.

The market capitalisation of the DSE advanced 1.22 per cent as it was Tk 3,874 billion on the opening day of the week. It rose to Tk 3,921 billion on Monday, the last trading day before Eid holidays.

The gainers took a modest lead over the losers as out of 337 traded issues, 157 closed higher, 151 ended lower and 29 issues remained unchanged on the DSE floor.

LankaBangla Finance topped the week's turnover chart with 13.33 million shares worth Tk 391 million changing hands.

The other turnover leaders were BBS Cables with Tk 390 million, City Bank Tk 287 million, Dhaka Bank Tk 255 million and Brac Bank Tk 208 million.

Midas Financing was the week's best performer, posting a gain of 20.78 per cent.

Aziz Pipes was the worst loser, losing 17.85 per cent as the securities regulator sent the company to "spot trading".

The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -advancing 297 points to settle at 17,111.

The Selective Categories Index - CSCX - also gained 181 points to close at 10,362.

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