Weekly analysis

Weekly analysis: Stocks rise on power sector issues

Turnover jumps 35pc on prime bourse

FE Report | Published: October 13, 2018 10:39:42 | Updated: October 24, 2018 14:18:19

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Stocks edged higher last week, extending the gaining streak for the second week in a row, as some investors showed their buying appetite on sector specific issues.

Market insiders said most of the investors were buying shares, particularly from power, food and pharma sectors, taking the market in the positive territory.

Accordingly, the power sector witnessed the highest gain of 3.14 per cent, followed by food with 2.14 per cent and pharmaceuticals 0.32 per cent.

Meanwhile, listed companies with low capitalisation continued to dominate the gainers' chart though they had no price sensitive information (PSI).

Central Pharmaceuticals was the week's highest gainer, posting a gain of 29.31 per cent, followed by VFS Thread Dyeing with 22.07 per cent and Meghna Cement 20.16 per cent.

The Dhaka Stock Exchange (DSE) also served show-cause notice on some of the companies several times. The companies informed the DSE that they have no price sensitive information.

The week featured five trading days as usual. Of them, three sessions edged lower while two sessions ended higher.

Week-on-week, DSEX, the prime index of the DSE, went up by 16.74 points or 0.31 per cent to settle at 5,435 points.

"The bargain hunters took position on sector specific stocks especially from power, food and pharma sectors which helped the bourse to end higher," commented International Leasing Securities.

Two other indices also edged higher. The DS30 index, comprising blue chips, advanced 27 points to close at 1,925 and the DSE Shariah Index rose 15 points to end at 1,265.

According to LankaBangla Securities, this upward shift in the index is mainly driven by significant positive changes in large-cap sectors like power, food and pharmaceuticals.

Turnover, another important indicator of the market, also rose and the total turnover amounted to Tk 38.94 billion which was Tk 28.79 billion in the week before.

The daily turnover averaged Tk 7.78 billion, registering an increase of 35 per cent over the previous week's average of Tk 5.75 billion.

Block trade contributed 3.70 per cent to the week's total turnover, where stocks like Khulna Power, Al-Arafah Islami Bank, Brac Bank, Square Pharma and United Power dominated the block trade board.

The power sector dominated the week's turnover chart, grabbing 26 per cent of the week's total turnover. It was followed by the textile with 16 per cent and engineering 14 per cent.

The market capitalisation of the DSE also advanced 0.34 per cent last week. It was Tk 3,895 billion on the opening day of the week. It rose to Tk 3,908 billion on Thursday, the last trading day of the week.

Among the major sectors, engineering witnessed the highest correction of 1.68 per cent, followed by banking with 0.30 per cent, telecommunication 0.21 per cent and financial institutions 0.18 per cent.

Of the 343 traded issues, 213 closed lower, 111 ended higher and 19 issues remained unchanged on the DSE floor last week.

Khulna Power Company topped the week's turnover chart for the fourth straight week with 32.17 million shares worth Tk 4.41 billion changing hands.

The other turnover leaders were United Power with Tk 2.14 billion, Summit Power Tk 1.90 billion, Dragon Sweater Tk 1.26 billion and Active Fine Chemicals Tk 1.23 billion.

Legacy Footwear was the worst loser, as its price plunged 27.41 per cent last week.

The port city's bourse, Chittagong Stock Exchange (CSE), also closed higher with the CSE All Share Price Index - CASPI -advancing 117 points to settle at 16,777.

The Selective Categories Index - CSCX - also rose 74 points to close the week at 10,164.

A new issue - Silva Pharmaceuticals -- made debut last week. Its share price soared 190 per cent from its issue price of Tk 10 each on debut day.


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