The Financial Express

Weekly market review

Stocks led by banks, textiles rebound

Malek Spinning's stocks jump 53pc on expansion news

| Updated: June 30, 2021 09:04:08

Stocks led by banks, textiles rebound

Stocks bounced back in the outgoing week, after a single-week break, as bargain hunters showed their appetite on major sector issues despite virus worries.

Week-on-week, DSEX, the core index of the Dhaka Stock Exchange (DSE), went up by 40.08 points or 0.66 per cent to settle at 6,092, after losing about 14 points in the previous week.

Market operators said stocks rebounded as institutional investors remained active in the market due to removal of the floor price restriction from all listed securities.

However, the retail investors mostly followed cautious approach due to the rising trend of virus cases and deaths in the country, they said.

The market holds its firm position at the 6,000 marks as buying support added strength to the equity indices despite worries over afresh virus-induced shock to the country's economy, commented EBL Securities.

The stockbroker noted that investors showed immense interest in the textile sector as they hope earnings from apparel exports will rise as the US and the EU economies, the major export destinations, rebounded with mass vaccinations.

"Textile sector captured the attention of the investors throughout the week as the sector topped both the turnover and the return charts".

The textile sector grabbed 21 per cent of the week's total turnover and generated the highest 10.90 per cent return led by Malek Spinning Mills.

Stocks of Malek Spinning jumped nearly 53 per cent in the outgoing week after news broke that the company is going to invest Tk 2.13 billion to expand its production capacity in order to meet the growing demand for yarn.

The spinning company's stocks closed at one year highest price at Tk 34.70 each on Thursday at the DSE.

Two other indices also edged higher with the DSE30 Index, comprising blue chips, advanced 2.47 points to finish at 2,199 and the DSE Shariah Index (DSES) gained 10.93 points to close at 1,301.

The week's total turnover on the DSE, however, fell slightly to Tk 95.24 billion against Tk 97.98 billion in the week before.

The daily turnover averaged out at Tk 19.04 billion, which was 2.80 per cent lower than the previous week's average of Tk 19.60 billion.

Market capitalisation of DSE also rose to Tk 5,106 billion on Thursday, up from previous week's Tk 5,081 billion.

According to International Leasing Securities, the regulatory moves to make the ailing listed companies operationally sound and financially viable for the greater interest of the shareholders and stock market tempted the investors positively to the market.

The stockbroker noted that the investors kept buying spree in textile, banking, food, pharma and financial institution sectors.

However, some shaky investors continued to book profit on quick-gaining stocks amid rising trend of the virus cases which might have negative impact on the country's economy, said the stockbroker.

The heavyweight banking sector moved up more than 4.0 per cent, followed by mutual fund with 2.80 per cent, financial institutions 1.30 per cent, pharma 1.30 per cent, food 1.10 per cent and telecom 0.40 per cent.

General insurance sector faced a big hit, losing 7.70 per cent, followed life insurance with 6.20 per cent, miscellaneous 2.40 per cent, engineering 1.10 per cent and power 1.10 per cent.

Of the 375 issues traded, 224 advanced, 140 declined and 11 remained unchanged on the DSE trading floor during the week.

Beximco-the flagship company of Beximco Group-was the most traded stock with shares worth Tk 6.54 billion changing hands, making up nearly 7.0 per cent of the week's total turnover.

It was followed by Pioneer Insurance (Tk 3.67 billion), National Feed Mills (Tk 2.30 billion), Makson Spinning Mills (Tk 1.92 billion) and Malek Spinning Mills (Tk 1.88 billion).

The Chittagong Stock Exchange (CSE) also ended marginally higher with the CSE All Share Price Index - CASPI -gaining 87 points to settle at 17,657 and the Selective Categories Index - CSCX rising 46 points to close at 10,622.

Of the issues traded, 192 advanced, 135 declined and 10 remained unchanged on the CSE trading floor.

The port city's bourse traded 159.21 million shares and mutual fund units with turnover value of Tk 5.61 billion.

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