Weekly stockmarket review

Stocks extend rally for fourth week

DSE market cap, indices hit record high


Babul Barman | Published: September 16, 2017 10:22:20 | Updated: October 24, 2017 23:35:11


The Dhaka bourse passed another buoyant week that ended Thursday with the core index of the prime bourse exceeding the 6,200-mark for the first time since its inception in January 2013.

 

Market insiders said stocks' record-breaking rally continued as investors were on buying mood on pharmaceuticals, telecommunication, financial institutions, power and banks, taking the indices and market cap to record high.

 

"The capital market passed another eventful week as the pre-Eid rally sustained with the index gaining nearly 90 points during the week," commented LankaBangla Securities, in its weekly market analysis.

 

The stockbroker noted that the DSE key index exceeded the 6,200-mark for the first time since its inception. The current index rally started from 5,820 levels and the index has already gained 6.90 per cent over the last three weeks.

 

"Much of the index movement over the last twelve months could be traced to financial sector stocks. But past week pharmaceuticals, cement and telecommunication drove the index despite financial stocks holding with huge share in market turnover," the stockbroker said.

 

Pharmaceuticals posted the highest gain of 4.52 per cent as the sector heavyweight Square Pharmaceuticals gained 8.24 per cent, followed by telecommunication sector with 3.28 per cent, financial institutions 2.56 per cent, power 0.12 per cent and banks 0.08 per cent.

 

"Overall, investors are exhibiting bullish mentality amidst increased fund flow towards the market," said an analyst at a leading brokerage firm.

 

However, he advised the investors to invest carefully in a rising market and should analyze the fundamentals of securities beforehand.

 

The week witnessed five trading sessions as usual. Of them, three sessions closed higher while two faced marginal correction.

 

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, went up by nearly 90 points or 1.45 per cent to settle at 6,204, the highest level since its inception on January 27, 2013.

 

The two other indices -- the DS30 index and the DSE Shariah Index (DSES) - also followed the suit to close at historical high at 2,225 and 1,385 points, after soaring 46.69 points and 37.41 points respectively.

 

The port city bourse, Chittagong Stock Exchange (CSE), also ended higher with its Selective Categories Index, CSCX, advancing 182 points or 1.58 per cent to settle at 11,650.

 

The bullish sentiment of market also reflected on turnover activity as the total turnover for the week stood at Tk 61.64 billion on DSE which was Tk 42.31 billion in the week before, rising 46 per cent. The last week saw five trading sessions instead of previous week's four.

 

The daily turnover averaged at Tk 12.33 billion, which was 16.56 per cent higher than the previous week's average of Tk 10.58 billion.

 

Block trade contributed 12 per cent to the total weekly turnover, where stocks like Social Islami Bank, Delta Brac Housing Finance Corporation, Pubali Bank, Jamuna Oil Company, Premier Cement, BRAC Bank and Orion Pharma dominated the block trade board.

 

Banking sector kept its dominance in turnover chart, grabbing 37 per cent of the week's total transaction, followed by financial institutions with 13 per cent and textile 8.0 per cent.

 

International Leasing Securities, said, "The market maintained the upward trend amid enthusiastic investors' presence in the market helped the benchmark index to cross 6,200 points mark for the first time after its inception since January 2013".
The stockbroker noted that the bargain hunters took position on the lucrative price levels in pharmaceuticals, cement, telecom and financial institution sector stocks while some others were rebalancing their portfolios over the week.

 

"Persistent upbeat market trend tempted the sideline investor injected fresh fund on stocks which led the average turnover to cross Tk 12 billion," the stockbroker added.

 

The total market cap of the DSE also rose to all-time high to Tk 4,131 billion at the end of the week, registering an increase of 1.31 per cent over the previous week's Tk 4,077 billion.

 

The gainers took a marginal lead over the losers as out of 333 issues traded, 178 closed higher, 136 lower and 19 remained unchanged on the DSE trading floor.

 

LankaBangla Finance topped the week's turnover chart with 45 million shares of Tk 2.88 billion changing hands, closely followed by Square Pharmaceuticals with Tk 1.42 billion, Premier Bank Tk 1.31 billion, City Bank Tk 1.28 million and Al-Arafa Islami Bank Tk 1.09 billion.

 

Provati Insurance was the week's highest gainer, posting an 18.37 per cent gain, while Bangladesh Steel Re-rolling Mills was the worst loser, losing 11.30 per cent.

 

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