Weekly analysis: Average turnover rises to Tk 8.91b

The Dhaka bourse witnessed volatility in last week ended on Thursday following correction incurred by major sectors.

In the first two sessions of the week, the prime index was positive while in the last three sessions it observed correction.

The investors mainly liquidated their holdings from telecom, ceramic, fuel & power, financial institution and pharmaceutical sectors.

At the end of the week, the DSEX, the broad index of Dhaka Stock Exchange (DSE), settled at 5,305.17 with a marginal loss of 32.20 points.

According to a market review of International Leasing Securities, some of the large cap stocks have failed to meet investors' expectation in the latest financial disclosure, which has contributed to the fall in the indices.

"However, some investors took position in the IT, service and cement sectors' stock anticipating better performance in the year-end financial disclosures to be announced soon," said the International Leasing Securities.

The average turnover of the week stood at Tk 8.91 billion on the premier bourse DSE as the investment capacity of Investment Corporation of Bangladesh (ICB) rose to a significant level due to intervention of the finance ministry.

The average trade volume increased 12.4 per cent and total numbers of trade decreased 0.5 per cent. And the market participation on the premier bourse increased 1.5 per cent in the last week.

Top ten traded stocks captured around 27.1 per cent of the week's average total turnover while BBS Cables alone snared 4.6 per cent of the weekly average turnover.

"The last week started with positive tune but shaky investors persisted their sell offs while some reshuffled their portfolio amid ongoing quarter-end earnings and year-end dividend declarations," said another market review of EBL Securities.

Weekly top gainer and loser lists were mostly comprised of small cap stocks. Point to point estimate revealed that during this week the blue chip index DS30 and shariah based index DSES lost 14.0 points and 13.3 points respectively to their previous week's indices.

Among the major sectors based on market capitalisation - telecom declined 3.8 per cent followed by ceramic 3.1 per cent, fuel & power 1.6 per cent, financial institution 1.5 per cent, and pharmaceuticals & chemicals 1.4 per cent.

Of the gaining sectors, IT advanced 7.8 per cent, services & real estate 6.8 per cent and cement 2.5 per cent.

The investors' activity was mostly focused on engineering which grabbed 25.6 per cent of the weekly average turnover followed by textile 15.5 per cent and pharmaceuticals & chemicals 12.1 per cent.

Of the weekly turnover leaders, BBS Cables captured 4.6 per cent of the weekly average turnover followed by KDS Accessories 2.9 per cent, IFAD Autos 2.8 per cent and The Peninsula Chittagong 2.8 per cent.

Of the top gainers, Khulna Printing and Packaging advanced 44.22 per cent. The company's share price rose mainly following the disclosure regarding restoration of production in two months.

Padma Islami Life Insurance advanced 33.67 per cent and Dragon Sweater and Spinning 21.55 per cent in five trading sessions of last week.

Of the weekly top losers, Jute Spinners declined 28.97 per cent, Libra Infusions 21.27 per cent and Meghna Pet Industries 21.08 per cent.

In last week, week, the CSE30, CSCX and CASPI lost 199.95 points, 38.13 points and 70.97 points respectively in the port city bourse Chittagong Stock Exchange (CSE).

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