Stocks inch up amid calm political situation

The stock market inched up last week with improved turnover, after closing lower in previous two weeks, as the political situation apparently became normal ahead of City Corporation Elections.
The week featured four trading sessions instead of five as the market was closed Tuesday due to Bengali New Year. Of those, first two sessions closed lower while last two ended higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 27.45 points or 0.63 per cent to close the week at 4,373.34 points.
However, the two other indices ended in the red. The DS30 index, comprising blue chips lost 2.83 points or 0.17 per cent to close at 1,668.35 points. The DSE Shariah Index shed 4.80 points or 0.45 per cent to close at 1,060.88 points.
The port city bourse Chittagong Stock Exchange (CSE) also closed in green with its Selective Categories Index - CSCX - gained 101.27 points or 1.25 per cent to close the week at 8,192.12 points.
Turnover, the most important indicator of the market, improved last week at the DSE. The total turnover for the week stood at Tk 17.10 billion against Tk 16.81 billion the week before despite the week saw four trading sessions instead of previous week's five.
The daily turnover for the week averaged Tk 4.27 billion, registering an increase of 27 per cent over the previous week's average of Tk 3.36 billion.
The investors' activity was mostly focused on power, engineering and pharma - the sectors that accounted for 26 per cent, 14 per cent and 13 per cent respectively of the week's total turnover.
"Market ended the week in green zone as opposition party called off non-stop strikes ahead of City Corporation Elections," said LankaBangla Securities, a stock broker, in its weekly market analysis.
"The 'psychological' support at 4,300-level also worked as a catalyst to stop further sell-off," said the stock broker. Market participation also increased last week as reflected by increase in average daily turnover of 27 per cent compared to previous week, it said.
IDLC Investments, a merchant bank, said, "Market seemed to have tried to breakout of the agonizing downtrend, last week".
"Although weakened confidence remained shy and reluctant to be optimistic, funds got injected from the sideline, improving turnover".
"Increased participation exerted a demand pull on stock prices, causing them to gain somewhat," said the merchant bank.
Meanwhile, promising earnings disclosure for turbulence-ridden January - March 2015 period helped investors reassess risk, it said.
"The stock market witnessed an upbeat trend last week amid the improvement in the country's political situation," said International Leasing Securities in an analysis.
Even though investors preferred short-term trading in the earlier sessions, position taking in several fundamental issues created moderate buying pressure in last two sessions of the week, said the International Leasing.
Among the large-cap sectors, power registered the highest return of 7.22 per cent over the week as the new listing in the sector United Power Generation & Distribution Company advanced by 43 per cent alone.
The financial sector posted gain with banks gaining 1.54 per cent and NBFIs appreciating by 1.00 per cent. Food and allied also went up by a meager 0.10 per cent.
Cement went through a correction of 2.63 per cent. Telecommunications and pharmaceuticals also went down by 2.10 per cent and 1.72 per cent respectively.  
The gainers took a modest lead over the losers as out of 318 issues traded, 195 advanced, 99 declined and 24 remained unchanged on the DSE trading floor.
Eight listed companies-AB Bank, IFIC Bank, Mercantile Insurance, Northern General Insurance, City General Insurance, Shasha Denims, Bangladesh General Insurance and Popular Life Insurance recommended dividend last week.
The market capitalisation of the DSE went up slightly by 0.79 per cent as it was Tk 3,140.06 billion on the opening day of the week and it stood at Tk 3,131.49 billion on closing day of the week.
United Power dominated the week's top turnover chart for the second straight week, with 10 million shares of Tk 1.94 billion changing hands during the week followed by MJL BD, Shasha Denims, IFAD Autos and ACI Ltd.
United Power was also the week's top gainer, posting a rise of 43 per cent while Jamuna Bank was the week's worst loser, plunging by 19.38 per cent following its price adjustment after record date.
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