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Weekly review: Major sectors see mixed performance

Turnover rises riding on ins issues


FE Report | Published: November 23, 2019 10:41:57 | Updated: November 24, 2019 20:48:35


File photo (Collected)

Dhaka bourse closed the week almost flat following the mixed performance of the major sectors.

In last week, many investors re-balanced their portfolios following the quarterly disclosures of the listed companies.

The stock brokers said the broad index displayed volatility as investors were busy in both sides of the trading fence.

The price correction or appreciation witnessed by some large cap companies was another reason behind the volatility.

Of the major sectors, the telecommunication mainly helped the broad index to escape large fall on Dhaka Stock Exchange (DSE).

On the other hand, the general insurance sector helped the DSE to observe marginal rise in turnover.

At the end of the week, the DSE broad index DSEX settled at 4706.67 points on Thursday with a marginal loss of 0.08 per cent or 3.70 points from the closing mark of the previous week.

The shariah based index DSES advanced 0.08 per cent or 0.85 point to close at Tk 1081.77.

The DS30 index comprising blue chip securities closed at 1650.65 points on Thursday with a rise of 0.76 per cent or 12.39 points.

According to International Leasing Securities, the prolonged bearish trend of the capital market prompted many investors to adopt wait and see stance.

"Though the bargain hunters tried to revive the current bearish trend of the index by taking position on telecom, the financial institutions, pharmaceuticals and insurance sectors but the heavy sell pressure in bank, food and fuel & power sectors battered the buyers' attempt," said the International Leasing Securities.

It said the price correction witnessed by large cap companies such as Mutual Trust Bank and British American Tobacco Bangladesh Company played a major role behind the correction of the broad index.

Of 357 issues traded, 172 advanced, 148 declined and 35 remained unchanged in last week.

The turnover rose marginally in last week riding on investors' increased participation observed in general insurance sector.

The DSE featured a daily average turnover of above Tk 3.96 billion which was 13.38 per cent higher than that of the previous session.

According to a market review of the EBL securities, investors' participation increased marginally as many investors engaged in re-balancing their portfolios following the quarterly disclosures of the listed companies.

Of the major sectors which witnessed price appreciation, engineering advanced 0.8 per cent, financial institutions 1.8 per cent, general insurance 3.0 per cent, pharmaceuticals & chemicals 1.0 per cent and telecommunication 7.2 per cent.

Of the sectors which witnessed price correction, bank declined 0.9 per cent, fuel & power 1.1 per cent, food & allied 1.6 per cent and tannery 1.8 per cent.

Following investors' increased participation, general insurance sector grabbed 20.4 per cent of the market turnover followed by engineering 13.7 per cent, pharmaceuticals & chemicals 12.7 per cent, and bank 8.1 per cent.

Insurance sector issues attracted the investors as per a recent directive which says non-life insurers must invest 7.5 per cent of assets in government securities.

National Tubes topped the scrip wise weekly turnover chart with a value of Tk 783.93 million followed by Grameenphone Tk 751.83 million, Sonar Bangla Insurance Tk 491.14 million, Beacon Pharmaceuticals Tk 441.92 million and Asia Insurance Tk 418.22 million.

Bangladesh Autocars topped the weekly gainers chart with a rise of 38.92 per cent to close at Tk 190.60 each.

On the other hand, Far East Knitting & Dyeing Industries witnessed the highest price correction and closed at Tk 9.50 each on Thursday.

On the Chittagong Stock Exchange (CSE), the CSE30, CSCX and CASPI index lost 132 points, 32 points, and 55 points respectively in last week.

mufazzal.fe@gmail.com

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