Weekly analysis: Index edges higher amid high hopes

The prime index of the major bourse posted a 2.29 per cent return in the last week of 2018 that ended on Thursday, as the key sectors led by banking and telecoms performed well.

Ahead of the national election and the New Year, high post-elections expectations from investors sent the stocks on a rally for the last seven consecutive sessions, brokers said.

Week on week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped by 120.32 points or 2.29 per cent to end the week at 5,385.

However, the index slumped 14 per cent or 859 points year on year in 2018, hitting a five-year low since 2013.

The week saw four trading sessions instead of five as the market was closed on Tuesday on the occasion of the Christmas Day. All four trading days ended higher.

Both the bourses of the country will remain closed on December 30 (Sunday) due to national elections and December 31 (Monday) due to bank holiday.

A leading broker said the securities regulator's positive move on margin rules and high post-election expectations coupled with year-end effect pushed the market higher.

The two other indices also edged up. The DS30 index, comprising blue chips, advanced 38.67 points to finish at 1,880 and the DSE Shariah Index closed 23.45 points higher at 1,232.

The total turnover stood at Tk 16.37 billion last week, up from Tk 15.10 billion in the week before.

The daily turnover averaged out at Tk 4.09 billion, logging an increase of 8.49 per cent over the previous week's average of Tk 3.77 billion.

EBL Securities said the expectations that the market would be better after the national elections prompted the investors to take fresh position.

Block trade contributed 4.80 per cent to the week's total turnover, with stocks like SK Trims & Industries, Brac Bank, Square Pharma, Trust Bank and Confidence Cement dominating the block trade board.

According to the International Leasing Securities, smart investors took position on under-priced shares, particularly in bank and financial institutions sectors, with the hope of obtaining good return after the polls.

Apart from these two sectors, telecoms, engineering, pharma, food and textile sectors also saw a buying spree, pushing the benchmark index higher, said the stockbroker.

The market capitalisation of the DSE also rose 1.66 per cent to Tk 3,872 billion from Tk 3,809 billion in the week before.

The banking sector saw the highest gain of 3.78 per cent, followed by telecommunications (3.02 per cent), financial institutions (2.57 per cent), food (1.99 per cent), engineering (1.78 per cent) and pharmaceuticals (1.53 per cent).

Of the 346 issues traded, 210 closed higher, 112 ended lower and 24 issues remained unchanged on the DSE trading floor.

The Khulna Power Company topped the week's turnover chart, with 10.22 million shares worth Tk 624 million changing hands.

The other turnover leaders were United Power (Tk 501 million), Brac Bank (Tk 403 million), Beximco (Tk 341 million) and Paramount Textile (Tk 340 million).

BD Autocars was the week's best performer, posting a gain of 34.33 per cent while Anlimayarn Dyeing was the biggest loser, shedding 12.91 per cent.

The port city bourse, Chittagong Stock Exchange (CSE), also ended higher, with its CSE All Share Price Index -- CASPI -- soaring 311 points to settle at 16,449, and the Selective Categories Index -- CSCX -- settled 184 points higher at 9,947.

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