Stock prices see clawback amid optimism

Stocks returned to higher last week that ended Thursday, snapping a single-week downturn, as investors took position on some large-cap stocks amid optimism.
 Analysts said the market showed signs of recovery last week, having optimistic support of large-cap stocks, especially from banks, non-bank financial institutions, engineering and power sector issues.
"The market passed an upbeat week riding on hopes that the securities' regulator will consider premier bourse's request of relaxing a provision of margin rules for another year," said an analyst at a leading brokerage firm.
However, the BSEC Thursday extended the timeframe of suspension of effectiveness of a provision of margin rules for the next six months to facilitate the transaction of inactive accounts.
The week witnessed five trading sessions as usual. Of them, first session faced 42 points correction while last four gained nearly 190 points amid optimism.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 147.33 points or 2.75 per cent to settle the week at 5,512.46, after losing 254 points in the previous week.
"After the last week downtrend, the index has shown signs of recovery this week," said LankaBangla Securities, a stockbroker, in its weekly market analysis.
The stockbroker noted that although index has shown signs of recovery, investor participation still remains low as the prolonged slide has affected investor confidence.
The total turnover for the week fell further to Tk 36.86 billion on the DSE which was Tk 47.96 billion in the week before.
The daily turnover averaged at Tk 7.37 billion, registering a decline of nearly 23 per cent over the previous week's average of Tk 9.59 billion.
The pharmaceuticals sector led the turnover chart, capturing 17 per cent of the week's total turnover value, closely followed by bank 16 per cent and engineering 15 per cent.
The two other indices also closed higher. The DS30 index, comprising blue chips, rose 45.47 points or 2.32 per cent to finish at 2,002.46. The DSE Shariah Index advanced 30.14 points or 2.40 per cent to close at 1,284.93.
The port city bourse, Chittagong Stock Exchange (CSE), also closed higher with its Selective Categories Index, CSCX, advancing 266.37 points or 2.65 per cent to close at 10330.
"Stocks returned to the green last week after a single-week break amid buying spree backed by hopes and excitements," said International Leasing Securities, a stockbroker, in an analysis.
The stockbroker noted that the bargain hunters turned into optimistic purchasing riding on the news that the securities' regulator may allow stockbrokers and merchant bankers to make share transactions in their clients' margin accounts for another year so that they could recoup the losses from the market crash of 2011.
"However, the market observed see-saw movement during the week as the risk-averse investors bagged some quick-gain while the active presence of the bargain hunters helped the benchmark index to close 147 points higher over the last week," said the stockbroker.
"Banks and non-bank financial institutions sectors led the market into positive direction amid earnings and dividend speculation," said Sheltech Brokerage, in an analysis.
All the major sectors saw turnaround over the week and gave positive price return with, NBFI, textile and bank issues showing the largest positive movements.
The gainers took a strong lead over the losers as out of 330 issues traded, 277 closed higher, 39 closed lower and 14 remained unchanged on the DSE trading floor.
 The total market capitalisation of the DSE also rose 2.12 per cent last week as it was Tk 321.18 billion on the opening day of the week, while it stood at Tk 3697.93 billion on closing day of the week.
 LankaBangla Finance dominated the week's turnover chart with 27.56 million shares of Tk 1.34 billion changing hands, followed by ACI Formulations Tk 1.05 billion, Beximco Tk 996 million, Pacific Denims Tk 976 million and Saif Powertec Tk 969 million.
LankaBangla Finance was the week's best performer, posting a 19.86 per cent gain, while Saif Powertec was the worst loser, slumping by 25.85 per cent following its price adjustment after record date of entitlement of rights.
 A new issue -- Pacific Denims-- made a stellar trading debut last week, as its share price jumped 170 per cent to close at Tk 27 on debut day against issue price of Tk 10 each on the DSE.
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