Weekly market review: Stocks end four-week losing streak, but volatility persists

The benchmark equity index bounced back in the outgoing week, snapping a four-week losing streak, as smart investors put fresh bets on beaten-down stocks, pushing the turnover higher.

Still, cautious investors stayed on the sidelines to wait for upbeat outlook on both the economic and political fronts.

During the week, Dhaka Stock Exchange (DSE) saw a total turnover of Tk 21.91 billion, up 47 per cent from the previous week, which featured four sessions due to a public holiday.

Of the five sessions this week, three sessions gained while two others suffered losses.

DSEX, the broad index of DSE, finally settled the week 25 points higher at 6280, as the majority of the sectors experienced marginal appreciation.

According to a market review of EBL Securities, opportunistic investors took positions in sector-specific issues that had undergone substantial corrections and were perceived to be traded at lucrative prices.

The DS30 index, comprising blue chip stocks, went up marginally and closed at 2,130 points.

Of 382 issues traded this week, 97 advanced, 60 declined and 225 remained unchanged on the DSE.

"Despite buyers dominating the majority of the sessions this week, the market has yet to show any major trigger to return to consistent positive momentum; and volatility still persists," said the EBL Securities.

The life insurance sector witnessed the highest appreciation and its market capitalisation advanced 1.7 per cent.

Of the life insurers, Rupali Life Insurance saw the week's highest gainer with an appreciation of 11 per cent, followed by Chartered Life Insurance Company (10.55 per cent).

Both the companies made their way to the chart of weekly top 10 gainers of the premier bourse.

On the other hand, the market cap of the general insurance sector declined 0.1 per cent as share prices of many companies of this sector declined.

Of the companies, Mercantile Islami Insurance was the week's worst loser, shedding 5.41 per cent. Agrani Insurance Company, Asian Insurance, Central Insurance and Bangladesh General Insurance Company declined marginally.

The miscellaneous sector saw the second highest appreciation of 1.3 per cent.

Most of the remaining sectors experienced marginal appreciation. Of them, the market cap of the banking sector advanced 0.4 per cent, engineering sector 0.1 per cent, and fuel & power sector 0.2 per cent.

Investors' participation was mostly concentrated on the food & allied sector, which grabbed 22 per cent of the weekly market turnover, followed by life insurance (9.4 per cent) and miscellaneous (9.3 per cent).

Fu Wang Food witnessed the highest participation of investors, grabbing 8.83 per cent of the weekly market turnover posted by the DSE.

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