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Weekly analysis: Bullish streak slows amid profit booking

Nine out of top 10 gainers from insurance sector


| Updated: January 26, 2019 10:19:45


File Photo (Collected) File Photo (Collected)

Stocks posted a marginal gain last week that ended on Thursday, as investors took to profit booking following a sharp rise in the prime index.

Market analysts said the bullish momentum has slowed to some extent after the index jumped more than 500 points in the past three straight weeks.

The week saw five trading days as usual. The key index of the prime bourse added 65.97 points in the first three sessions but wiped out 37.70 points in the next two days.

Week on week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), rose by 28.27 points or 0.49 per cent to settle at 5,825.

The DSEX recovered 440 points or 8.17 per cent in the past 13 trading sessions in 2019 after losing 859 points or 14 per cent last year.

A leading broker said stocks maintained its post-election rally amid spontaneous participation although some investors booked profit in later part of the week.

During the week, local and foreign investors were active on the trading floor, pushing the average daily turnover above Tk 10 billion-mark, he noted.

The total turnover shot up to Tk 52.71 billion last week, up from Tk 49.25 billion in the week before.

The daily turnover averaged out at Tk 10.54 billion, registering an increase of 7.03 per cent over the previous week's average of Tk 9.85 billion.

The market capitalisation of the DSE also advanced 0.40 per cent to Tk 4,121 billion, up from Tk 4,105 billion in the week before.

The International Leasing Securities said the market maintained its post-election rally amid optimism, pushing the core index above the 5,800-points since April 2018.

The stockbroker noted that the bargain hunters took position at the lucrative price level, particularly in financial institutions, general insurance, engineering, banking and power sectors.

However, some risk-averse investors reshuffled their holdings from telecoms, textile and cement sectors stocks to book quick profit, it said.

The daily average turnover crossed Tk 10 billion-mark for the first time since September 2017 as the bargain hunters continued injecting fresh funds into the market amid stable political situation after the national elections, the stockbroker added.

Two other indices, however, fell marginally. The DS30 index, comprising blue chips, finished 2.26 points lower at 2,009 and the DSE Shariah Index lost 8.86 points to close at 1,309.

Among the major sectors, the general insurance posted the highest gain of 13.60 per cent, followed by engineering (5.20 per cent), financial institutions (2.60 per cent), power (2.30 per cent) and banking (0.70 per cent).

On the other hand, telecommunications witnessed the highest correction of 3.40 per cent, followed by textile (2.10 per cent), cement (1.20 per cent) and food (0.10 per cent).

Losers outpaced gainers as out of 348 issues traded, 170 declined, 160 advanced and 18 issues remained unchanged on the DSE floor.

Khulna Power Company dominated the turnover chart, with 24.61 million shares worth Tk 1.71 billion changing hands.

The other turnover leaders were BBS Cables (Tk 1.32 billion), Olympic Industries (Tk 1.26 billion), JMI Syringes (Tk 859 million), and United Power (Tk 829 million).

The insurance sector performed well last week as nine out of top ten gainers were the insurance companies, with Agrani Insurance emerging as the week's best performer, posting a gain of 53.59 per cent.

Meghna Condensed Milk was the week's biggest loser, shedding 22.48 per cent.

The port city bourse, Chittagong Stock Exchange (CSE), also stayed in the positive trend, with its CSE All Share Price Index -- CASPI -- advancing 93 points or 0.52 per cent to settle at 17,858 and the Selective Categories Index -- CSCX -- gaining 64 points or 0.59 per cent to finish at 10,790.

A new issue -- SS Steel Limited -- made a flying trading debut on Thursday as its share price jumped 401 per cent to close at Tk 50.10 on the day.

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