Weekly analysis

Key index closes marginally higher, daily average turnover declines 8.31pc

FE Report | Published: August 12, 2017 04:36:40 | Updated: October 24, 2017 13:56:09

Dhaka bourse closed the week that ended Thursday marginally higher amid 'see-saw' movements following mixed performance displayed by major sectors.

At the end of the week, the key index closed marginally higher.

The turnover, however, declined slightly compared to turnover of previous session on Dhaka Stock Exchange (DSE).

Market insiders said some investors took position in 'lucrative' stocks while others were busy to rebalance their portfolios.

DSE broad index DSEX closed positive in three of the five days of the week with combined total gain of 44.83 points. The remaining two trading days saw negative movement with combined loss of 23.47 points.

 As a result, DSEX closed at 5901.81 points with a rise of 0.36 per cent or 21.36 points at the end of the week.

Among the large cap sectors, engineering, cement, and telecommunication gained 2.44 per cent, 1.45 per cent and 1.44 per cent respectively.

According to International Leasing Securities, the stock market observed see-saw movements in the week as the investors booked profit on the bank sector stocks following price surge over the last few sessions.

"The bargain hunters took position on the lucrative price levels in sector specific stocks while some others were rebalancing their portfolios over the week," said International Leasing Securities.

It said investors' concentration on the bank sector issues following their positive earning declarations during the first six months of the year.

According to EBL Securities, the premier bourse started with positive trends for two consecutive sessions followed by a mild correction for another two consecutive periods.

"The investors were optimistic at the beginning of the week and EPS declaration of banks and announcement of reduced tax rate of 0.7 per cent for export oriented textiles spurred positive gain in the index," said the EBL Securities.

During the week, the DSE featured a daily average turnover of above Tk 9.75 billion which was 8.31 per cent less than average daily turnover of previous session.

Average trade volume decreased by 3.7 per cent to 1,747,074,354 and total number of trades decreased by 0.4 per cent to 717,045.

The top gainers and losers list comprised mostly of small cap stocks.

The market's weighted average P/E shoot at 16.23 in last against P/E of 16.15 calculated in previous week.

Among the major sectors based on market capitalisation, bank advanced 1.5 per cent followed by cement 1.5 per cent and telecom 1.4 per cent.

Among the declining sectors, mutual fund was number one with a loss of 2.2 per cent.

The investors' activity was mostly focused on bank sector which grabbed 28.6 per cent of market turnover followed by textile 14.5 per cent and engineering 13.5 per cent.

C & A Textiles, IFIC Bank, City Bank and IFAD Autos were on top of the weekly scrip-wise turnover board.

Among top gainers, the share price of BBS Cables rose 29.89 per cent, Rupali Bank 17.91 per cent and Kay & Que 17.15 per cent.

Information Services Network was number one loser followed by

National Life Insurance Company, Sunlife Insurance Company and

Khulna Printing and Packaging.


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