Micro-cap, select blue chips dominate market

Stocks ended higher last week, extending the rally for the third week in a row with turnover improving slightly as investors focused on micro-cap and selective large-cap stocks.
Last week featured all five trading sessions as usual. Among them, the market lost 33.41 points in first two sessions while the last three accumulated 66.95 points gain.
Week-on-week, the prime index Dhaka Stock Exchange (DSEX) went up by 33.54 points or 0.72 per cent to close the week at five-month high level of 4,675.92 points since April 24.
The other two indices - DSE 30 and DSE Shariah Index climbed at the highest point level of 1,786.58 points and 1,101.32 points from the inception, gaining 28.33 points and 12.39 points respectively during the week.
The port city bourse Chittagong Stock Exchange (CSE) also edged marginally higher with its Selective Categories Index CSCX moving up by 32.60 points or 0.37 per cent to close at 8,757.85 points.
The market turnover improved slightly. The week's total turnover amounted to Tk 28.66 billion which was Tk 27.00 billion in the week before.
The daily turnover for the week averaged Tk 5.73 billion, registering an increase of 6.17 per cent over the previous week's average Tk 5.40 billion.
The investors' attention was mostly concentrated on engineering, pharmaceuticals and power - the sectors that accounted for 17 per cent, 16 per cent and 12 per cent respectively of the week's total turnover.
"Strong dominance of multinational companies, primarily due to dividend expectation noted last week's trading pattern," IDLC Investments, a merchant bank said in its weekly analysis.
The investors found interest in most of the multinationals' stocks in middle part of the week as they were assuming same or better dividend pattern, like 2013. Consequently, bullish trend sustained and closed the market in the green zone, said the merchant bank.
"The changing preferences to micro-cap along with selective large-cap, especially blue chip stocks assisted investors' growing interest in market," the merchant bank added.
"The market continued its uptrend which started nine weeks earlier on July 14," LankaBangla Securities, a brokerage, said in its analysis.
The week started with modest correction in the index in first two trading sessions, but the bull got back its rhythm in the last three trading sessions recovering earlier losses, said the stock broker.
International Leasing Securities said the market's momentum shifted towards engineering, pharmaceuticals and power stocks as the investors found profitable opportunities in various issues among these sectors.
Among the sectors, top gaining sectors of the week were tannery 5.0 per cent, cement 4.94 per cent and food and allied 3.79 per cent. Conversely, top losing sectors were paper and printing 5.46 per cent, ceramic 3.5 per cent and NBFI 3.44 per cent.
Telecommunication lost 0.11 per cent. Pharmaceuticals and power appreciated 1.84 per cent and 1.53 per cent respectively. Banks closed 0.73 per cent higher.
Losers outpaced gainers as out of 307 issues traded, 172 declined, 119 advanced and 16 remained unchanged on DSE floor during the week.
Three listed companies - Singer Bangladesh, Deshbandhu Polymer and Delta Brac Housing Finance Corporation -- made corporate declaration last week.
Singer Bangladesh declared 160 per cent interim cash, Deshbandhu Polymer recommended 10 per cent stock and Delta Brac Housing declared 25 per cent cash dividend.
The market capitalisation of the DSE went up by 1.40 per cent as it was Tk 3,125.35 billion on the opening day of the week and it stood at Tk 3,169.16 billion on closing day of the week.
MJL Bangladesh dominated the week's top turnover chart with shares worth Tk 1.23 billion changing hands, followed by Beximco, Singer BD, Lafarge Surma Cement and ACI.
ACI Formulations was the week's top gainer, posting a rise of 60.80 per cent while ICB was the week's worst loser, slumping by 19.11 per cent following its price adjustment in the week after record date.
Shurwid Industries made debut last week (Monday). Each share of the company traded between Tk 50.5 and Tk 33.3 on the DSE before closing at Tk 48.2, gaining 382 per cent on the debut day.