10 days ago

Weekly market review

DSEX regains 400 pts in three weeks as investor sentiment improves

Market cap rises by 1.45pc as large-cap stocks surge

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The market continued to rally, rounding off a third straight week of gains as buyers renewed their appetite especially for large-cap stocks.

The benchmark equity index, DSEX, regained almost 400 points in the past three weeks to end the week at 5,497 points.

The investors remained upbeat following the news that the government employees may be allowed to trade in stocks. Also, some fresh funds flowed into the market as investors received refunds from the latest IPO subscriptions, according to market experts.

As a result, the market ended higher in three trading days, out of four, as the market remained closed on July 1 due to bank holiday.

This week, the DSEX, the prime index of the Dhaka Stock Exchange (DSE), soared 142 points or 2.65 per cent to close at 5,497, the highest in seven weeks.

The DSE market-cap, which is calculated by multiplying the total number of shares with the current market price, also rose by 1.45 per cent or Tk 96 billion to Tk 6.71 trillion at the end of the week.

The stock market showed signs of recovery as the buoyant investors continued to put fresh bets on large-cap stocks owing to rebound in investor sentiment, said EBL Securities.

"Buyers remained on the dominant side as opportunistic investors sought to take positions in particular shares, which they deemed lucrative at the prevailing price levels," said the stockbroker.

Beximco Pharma, Power Grid, BRAC Bank, BAT Bangladesh, Khan Brothers PP Woven Bag Industries, IFIC Bank and Heidelberg Cement jointly accounted for more than 40-point rise in the index.

Other blue chip stocks, including multinational companies, such as Unilever Consumer Care, Marico, Berger Paints, Linde Bangladesh, and Bata Shoe also witnessed price appreciation.

Subsequently, the blue-chip index DS30, a group of 30 prominent companies, surged more than 29 points to 1951 while the DSES index, which represents Shariah-based companies, rose 25 points to 1,208.

The news that the government may allow public servants to trade in the share market boosted investor confidence, Minhaz Mannan Emon, managing director of BLI Securities, said on Thursday.

"Investors rushed to capitalise on oversold stocks deemed to be trading at lucrative prices," said Mr Emon, also ex-director of the Dhaka bourse.

Some fresh funds also entered the market as investors received refunds from the latest IPO subscription. Investors who applied for Techno Drug's IPO shares got back the unused funds on Thursday and put fresh bets on blue-chip shares, he added.

A huge amount of funds had remained stuck in Techno Drug's IPO as the drug maker received Tk 24.87 billion against IPO shares of Tk 1 billion.

All sectors posted positive performance. Among the major sectors, the non-bank financial institutions posted the highest gain of 5 per cent, followed by power, engineering, banking, telecom, food and pharma.

The total turnover, which indicates the volume of shares traded during the week, stood at Tk 24.63 billion, as against Tk 28 billion as this week saw four trading days instead of previous week's five.

The daily average turnover, however, jumped 10 per cent to Tk 6.15 billion, up from Tk 5.60 billion in the week before.

Pharmaceuticals, food and engineering sectors accounted for almost 41 per cent of the week's total turnover.

A majority of the stocks saw price surge, as out of the 393 issues traded, 329 closed higher, 40 ended lower and 24 remained unchanged on the DSE trading floor.

Beach Hatchery became the most-traded stocks with shares worth Tk 534 million changing hands, closely followed by Alif Industries, Unilever Consumer Care, Orion Pharma and BAT Bangladesh.

The Chittagong Stock Exchange (CSE) also ended sharply higher with its All Share Price Index (CASPI) soaring 375 points to 15,463 and the Selective Categories Index (CSCX) rising 229 points to 9,315.

The port-city bourse saw a record turnover of Tk 6.68 billion, riding on Square Pharma, which alone accounted for 35 per cent to the total turnover.

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