Large cap stocks help turn around market

Driven by large cap issues, stocks turned around last week after a bearish mood that spanned for four consecutive weeks.
The week featured all five trading sessions and of them, the first and last sessions saw marginal correction while mid-three sessions witnessed steep gain.
Week-on-week, the DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,900-point-mark and closed the week at 4,961.84 points, gaining 189.29 points or 3.97 per cent.
The two other indices made sharp gain. The DS30, comprising blue chips index advanced 82.80 points or 4.70 per cent to close at 1,843.69 points. The DSE Shariah Index rose 54.57 points or 4.93 per cent to close at 1,161.43 points.
The port city bourse Chittagong Stock Exchange (CSE) also made sharp gain after four weeks with its Selective Categories Index-CSCX - gained 357.65 points or 3.99 per cent to close the week at 9,310.27 points.
Some fresh fund injection was observed last week and the total turnover for the week amounted to Tk 19.77 billion against Tk 16.27 billion the week before.
The daily turnover for the week averaged Tk 3.95 billion, registering an increase of 21.52 per cent over the previous week's average of Tk 3.25 billion.
The investors' attention was mostly focused on pharma, power and banks - the sectors that accounted for 17 per cent, 16 per cent and 12 per cent of the week's total turnover respectively.
"The lucrative prices, expectation on year-end earnings as well as stock specific positioning, particularly in large-cap stocks assisted the market to turnaround last week," said IDLC Investments, in its weekly market analysis.
The extended level of gaining tone revealed an upbeat reversal, though marginal level of profit booking took place. Overall, investors found confidence in returning market with some fresh fund injection, said the merchant bank.
On the economic front, improvement in remittance flow left its positive impact, bu the news of increased default loans frightened the market participants, the merchant bank observed.
 "The investors' consistent focus on large-cap stocks, especially GP, Lafarge Surma MJL BD and Square Pharma put an upbeat vibe in overall market movement," it added.
LankaBangla Securities said that the market observed some ray of sunshine after consecutive weeks of correction. Investors' became active during the week as average daily turnover increased from previous week.
Trailing market P/E reached 15.66 in the previous week, which might have lured the buyers from sideline, said the stock broker.
International Leasing Securities said that the market regained the investors' confidence with a few consecutive bullish sessions last week.
 "Price-hike of selected large-cap individual stocks along with positive movement in bank sector issues aided the DSEX to soar last week," the International Leasing added.
All the major sectors posted gains in the week. Telecommunication registered the staggering gain of 12.13 per cent followed by cement 5.40 per cent and power 5.30 per cent.
Pharmaceuticals and banks advanced 3.31 per cent and 3.04 per cent respectively. NBFIs and food and allied sectors also gained 2.95 per cent and 0.69 per cent respectively.
The gainers took a strong lead over the losers as out of 317 issues traded, 236 advanced, 59 declined and 22 remained unchanged on the DSE trading floor.
Two listed companies - Reckitt Benckiser (Bd.) Ltd and Keya Cosmetics Ltd made corporate declaration last week. Reckitt Benckiser declared 175 per cent interim cash dividend and Keya Cosmetics recommended 20 per cent cash dividend.
The market capitalisation of the DSE went up sharply by 4.11 per cent as it was Tk 3,154.56 billion on the opening day of the week and it stood at Tk 3,284.15 billion on closing day of the week.
Keya Cosmetics dominated the week's top turnover chart with shares worth Tk 830.97 million changing hands followed by Beximco Pharma, AB Bank, GP and Summit Alliance Port.
Safko Spinning was also the week's top gainer, posting a rise of 14.57 per cent while Olympic Industries was the week's worst loser, plunging by 22.52 per cent.
A new issue - Hamid Fabrics made debut last week. The textile maker's share price closed at Tk 56.1 each, registering an increase of 60.28 per cent from its issue price of Tk 35 in the premier bourse.
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