Stocks end higher amid increased turnover

Babul Barman
The last week of the outgoing fiscal year closed higher that ended Thursday with increased turnover as investors went for buying spree with additional funds.
The week featured four trading sessions instead of five as trading remained closed on July 1 due to 'Bank Holiday'. Among those, the market closed higher in first three sessions while last one saw marginal correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,500-mark and ended the week at 4,572.59 points, gaining 117.30 points or 2.63 per cent.
The two other indices also ended higher. The DS30 index, comprising blue chips, rose 57.25 points or 3.34 per cent to settle at 1,772.91. The DSE Shariah Index gained 28.73 points or 2.63 per cent to finish at 1,121.05 points.
The port city bourse, Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index - CSCX - gained 227 points or 2.72 per cent to end the week at 8,576.66 points.
Fresh injection of fund helped the turnover to rise to Tk 18.85 billion against Tk 18.42 billion in the week before though the last week saw four trading sessions instead of previous week's five.
The daily turnover for the week averaged Tk 4.71 billion, registering an increase of 28 per cent over the previous week's average of Tk 3.68 billion.
The investors' attention was mostly focused on pharma, engineering and power - the sectors that accounted for 21 per cent, 16 per cent and 12 per cent respectively of the week's total turnover.
"The last week of outgoing fiscal year went on with a robust upswing in the market as tax incentive seeking investors pumped up the market with additional fund," said IDLC Investments, a merchant bank, in its weekly analysis.
"Their preference was mostly on large-cap and mid-cap stocks as these are deemed to be 'safe' investment," said the merchant bank.
Last week, the budget along with the finance bill was passed. The bill sustained most of the incentives to the economy that the finance minister proposed.
Bangladesh Bank's extension of time for Banks to adjust their single borrower exposure limit for their subsidiary merchant bank and brokers created a breathing space for the market, by the end of the week, said the merchant bank.
"At the second week of Ramadan, investors were in a buying mood. Market crossed the 'psychological' 4,500-level last week with increased turnover of 28 per cent compared to previous week," said LankaBangla Securities, a stockbroker, in its weekly analysis.
"The country's capital market exhibited positive trend last week along with lively participation from the investors," said International Leasing Securities, a stockbroker, in its weekly analysis.
There were some issues like, decision regarding on the abolition or conversion of the mutual fund, tax rate cut on the export earnings in the budget stimulated the investors' confidence level, said the stock broker.
All large-cap sectors ended the week in green. NBFIs registered a gain of 5.63 per cent. Cement also advanced by 3.93 per cent. Power posted a gain of 2.99 per cent.
Food and allied went 2.93 per cent up. Pharmaceuticals moved up by 2.51 per cent. Telecommunication and banks gained 2.50 per cent and 1.68 per cent.
The gainers took a strong lead over the losers as out of 325 issues traded, 229 advanced, 72 declined and 24 remained unchanged on the DSE trading floor.
The market capitalisation of the DSE went up by 2.40 per cent as it was Tk 3,163.45 billion on the opening day of the week and it stood at Tk 3,239.49 billion on closing day of the week.
Three listed companies - Bangladesh Services, Standard Insurance and Prime Islami Life Insurance-- recommended dividend last week.
Olympic Accessories, which made trading debut on June 25, was the week's top turnover leader with shares worth Tk 711.78 million changing hands during the week followed by Beximco Pharma, Lafarge Surma Cement, Square Pharma and GP.
Olympic Accessories was also the week's best performer, posting a rise of 33.68 per cent while BIFC was the week's worst loser, plunging by 27.87 per cent.
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