Weekly market review: Stocks gain with sharp rise in turnover

Stocks closed higher for a second consecutive week to Thursday, as investor confidence began to rebound following regulator's assurances that 'floor price' restriction to remain in place until the market gets due momentum.

With a big gain in the benchmark equity index, the turnover also saw a sharp rise on the Dhaka Stock Exchange (DSE) as investors' participation increased significantly.

Although it was a four-day week because of a public holiday, the DSE witnessed a 44.10 per cent increase in the weekly market turnover, compared to the previous five-day week. This week's turnover totalled Tk 25.85 billion as against Tk 17.94 billion in the previous week.

And the benchmark DSEX index closed 46.43 points or 0.75 per cent higher at 6260.18 points on Thursday.

Increased participation of the investors displayed growing optimism and confidence in the overall prospect of the market, said a market review of International Leasing Securities.

"Positive and participative approach from investors ensured gradual upswing of the index throughout the week except the last day," it said.

Small-cap companies played a pivotal role in pulling the market turnover and indices on the premier bourse DSE.

Investors' participation was concentrated mostly on IT sector which grabbed 19.4 per cent of the weekly market turnover followed by life insurance 11.8 per cent, food & allied 9.3 per cent, pharmaceuticals & chemicals 7.6 per cent and travel & leisure 6.5 per cent.

The travel & leisure sector saw the highest price appreciation (13.20 per cent), driven by Sea Pearl Beach Resort & Spa and Unique Hotel & Resorts.

The share price of Unique Hotel & Resorts advanced 10.33 per cent to close at Tk 68.30 each while the share price of Sea Pearl Beach Resort & Spa went up by 16 per cent to close at Tk 320.10.

During the week, the premier bourse posted a daily average turnover of Tk 6.46 billion, up 80.12 per cent from the previous week.

However, most large-cap companies remained stuck at the floor price level.

Of 383 issues traded in the week, 135 advanced, 23 declined and 225 remained unchanged on the premier bourse DSE.

"The benchmark index of the capital bourse continued its upward trend for two consecutive weeks as investor confidence began to rebound across the trading floor, owing to a clear indication of not withdrawing the floor prices in the immediate future," said a market review of EBL Securities.

It said the prolonged market correction has created lucrative investment opportunities, enticing bargain hunters to take positions in sector-specific issues.

The Shariah-based DSES index closed at 1362.33 with a rise of .37 per cent or 5.04 points and the blue-chip DS30 index advanced 0.75 per cent or 46.43 points to finish at 2226.97 points.

Of the sectors which saw price appreciation, paper & printing sector advanced 7.9 per cent, IT sector 7.1 per cent, general insurance 3.8 per cent, life insurance 2.8 per cent, jute 2.6 per cent, food & allied 1.7 per cent and banking sector 0.1 per cent.

Of the sectors which saw price erosion, financial institutions declined 0.1 per cent, mutual fund 0.1 per cent and services & real estate 0.1 per cent.

Legacy Footwear topped the gainers chart with a rise of 22.30 per cent and closed at Tk 49.90 each on Thursday.

Union Capital was the week's worst loser, shedding 16.67 per cent to close at Tk 7.50 each.

The Chittagong Stock Exchange (CSE) also ended higher, with its broad based index, CASPI, gaining 167.4 points in the week.

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