Stocks extend winning spell for 3rd week

Stocks extended their winning streak for the third straight week that ended Thursday with higher participation as the regulatory move prompted the investors to take position on lucrative stocks.
Analysts said the regulatory decisions, especially imposition of two year lock-in period on sponsor-directors' bonus shares of newly listed companies jacked investors' confidence up.
The securities regulator Monday last took a number of decisions, including imposition of two year lock-in period on sponsor-directors' bonus shares of newly listed companies and extension of deadline for transactions in the accounts having negative equities till December 2016.
"Two-year lock-in on newly-listed companies' sponsor-directors' bonus shares, made investors optimistic as the bar would help reduce sale pressure from sponsor-directors," said an analyst.
The week featured five trading sessions as usual. Of them, four sessions closed higher while one saw marginal correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,600-mark after more than one months and settle the week at 4,641.04, after gaining 67.29 points or 1.47 per cent.
The two other indices also ended higher. The DS30 index, comprising blue chips, soared 42.59 points or 2.46 per cent to finish at 1,772.23. The DSE Shariah Index advanced 23.08 points or 2.10 per cent to finish the week at 1,124.23.
The port city bourse Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - advancing 144.49 points or 1.69 per cent to end at 8,651.72.
IDLC Investments, a merchant bank, said "Mixed macroeconomic and capital market news exposure prompted investors to demonstrate mixed investment plan". "Participants took the path of profit booking alongside reshuffling strategy throughout the five sessions of the week," said the merchant bank.
"Especially, the securities regulator's imposition of two year lock-in period on sponsor-directors' bonus shares of newly listed companies, boosted up investors' confidence pushing DSEX beyond 4,600-mark during the week," said the merchant bank.
The merchant bank noted that as the last month of the year started-off during the week, investors tuned-up their investment insights which invigorated the market participation.
Accordingly, turnover escalated, with total turnover on the DSE amounting to Tk 25.08 billion which was Tk 21.96 billion in the week before.
The daily turnover averaged Tk 5.02 billion, which was 14.20 per cent higher than the previous week's average of Tk 4.39 billion.
Overall activities remained confined on, engineering, pharma and power sectors, where they captured 25 per cent, 16 per cent, 13 per cent respectively of the week's total turnover.
"Stocks ended the week with consistent gain as the market was driven by industry specific news and economic updates," said LankaBangla Securities, a stockbroker, in an analysis.
"As market has already digested quarterly earnings, all eyes are looking to see how market triggers impacted the bellwethers stocks," said the stockbroker.
International Leasing Securities, a stockbroker, said, "Regulatory decisions like extension of deadline for transactions in the accounts having negative equities till December 2016, allowing the provisioning against the un-realized losses of stock brokers and merchant banks through five quarters during December 2015 to December 2016 and imposing the two-year lock-in on the bonus shares owned by sponsor-directors of newly listed companies made the investors buoyant".
Royal Capital, a stockbroker, said, "The market continued value maximization with lower volatility which evidenced in the last week after a long period of downfall".
"Market risk plunged by 45.51 per cent last week in compared to the previous week while 14.20 per cent spike in turnover level with 67.29 points soar in DSEX better indicates investors were in strong buy mode," said the stockbroker.
The market breadth remained unchanged as out of 326 traded issues, 149 closed higher, 149 lower and 28 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went up by 1.59 per cent as it was Tk 3,150.59 billion on the opening day of the week and it stood at Tk 3,200.64 billion on closing day of the week.
LR Global Bangladesh Mutual Fund One recommended dividend last week. The Mutual Fund recommended 10 per cent cash dividend for the year ended on September 30, 2015.
BSRM Steels dominated the week's turnover chart with shares of Tk 1.08 billion changing hands during the week followed by Beximco Pharma Tk 991 million, IFAD Autos Tk 919 million, Square Pharma Tk 757 million and KDS Accessories Tk 680 million.
Desh Garment was the week's best performer, posting a rise of 20.33 per cent while Savar Refractories was the week's worst loser, plunging by 17.33 per cent.
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