Large cap stocks help break bearish mood

FE Report
The stock market witnessed a positive week that ended Thursday, breaking four consecutive weeks of losing streak as investors took position on large cap stocks.
The week featured all five trading sessions and three sessions closed positive while two ended in negative.
Week-on-week, the prime index of Dhaka Stock Exchange (DSEX) crossed the threshold of 4,400 points and ended at  4,430.48 points, gaining 46.41 points or 1.06 per cent.
The other two indices also closed higher. The DS30, comprising blue chips, gained 19.67 points or 1.24 per cent to close at 1,609.27 points. The DSE Shariah Index (DSES) went up by 19.90 points or 2.05 per cent to close at 992.82 points.
The port city bourse the Chittagong Stock Exchange (CSE) also went up after four weeks' losing streak with its Selective Categories Index (CSCX) gaining 33.75 points or 0.40 per cent to close the week at 8,468.99 points.
The total turnover at DSE amounted to Tk 13.03 billion last week against the previous week's total transaction value of Tk 11.73 billion.
The average daily turnover for the week stood at Tk 2.60 billion, registering an increase of 11.11 per cent over the previous week's average of Tk 2.34 billion.
"Budgetary expectations continued to energise investors throughout the week. Amid cyclical movements and natural force of demand-supply, the overall market momentum remained mixed," commented IDLC Investments, in its weekly market analysis.
Throughout the week, investors preferred shuffling across sectors and stocks and portfolio re-balancing was prominent on the basis of investors' preference to Large Cap stocks, said the merchant bank.
With supportive news of foreign fund release of annual development programme (ADP) and few developments in the Padma Bridge construction, cement and engineering sectors were at the centre of investors' attention last week, the merchant bank said.
Back and forth, usual reversion and profit booking took place infrequently. As week ended, DSEX gained 46.41 points and surpassed above 4,400 points level. But participation remained dull, averaging daily turnover at Tk 2.60 billion, the merchant bank added.
Though the markets close marginally higher, the market is yet to confirm its direction, said LankaBangla Securities.
"Investors are eagerly waiting for the upcoming budget to be announced next month to sense the government's mentality whether they will help spur growth," said the stock broker.
"The market turnover is still low which shows investors' cautious stance about fresh investment. Average turnover was Tk 2.60 billion, indicating lack of strength in movement," said the stock broker.
Cement sector was up by 8.45 per cent fuelled by news of government's allocation Tk 81 billion for Padma Bridge in the upcoming budget, said the stock broker.
The losers, however, took a modest lead over the gainers as out of 303 issues traded during the week, 168 advanced, 112 declined and 23 issues remained unchanged on the DSE floor.
Throughout the week, Large Cap segment was the centre of investors' preference and gained by 3.44 per cent.
Sectoral performance was mixed in the week. Food and allied was the biggest gainer as it posted a staggering 5.54 per cent gain followed by telecommunication and pharmaceuticals which advanced 3.95 per cent and 3.02 per cent respectively.
NBFIs, fuel and power and bank lost 1.89 per cent, 0.75 per cent and 0.04 per cent respectively.
The market capitalisation of the DSE went up by 1.33 per cent as it was Tk 2,846.98 billion on the opening day of the week and it stood at Tk 2,884.86 billion on closing session of the week.
Lafarge Surma Cement dominated the week's top turnover chart with shares worth Tk 1.24 billion changing hands during the week followed by GP, Square Pharma, BSRM Steels and Mercantile Bank.
ACI Limited was the week's top gainer, posting a rise of 18.46 per cent while Rupali Life Insurance was the week's worst loser, slumping by 15.87 per cent.