Stocks keep upturn amid optimism

Babul Barman
Stocks edged marginally higher for the second straight weeks that ended Thursday as investors showed buying appetite on fundamentally strong stocks amid optimism.
The week featured five trading sessions as usual. Of those, the market ended lower in first two sessions while last three sessions closed higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 27.33 points or 0.60 per cent to finish the week at 4,599.91.
The two other indices also closed higher. The DS30 index, comprising blue chips, gained 22.34 points or 1.26 per cent to settle at 1,795.25. The DSE Shariah Index rose 12.69 points or 1.13 per cent to end at 1,133.74.
The port city bourse, Chittagong Stock Exchange (CSE) also closed marginally higher with its Selective Categories Index - CSCX - gained 50.21 points or 0.58 per cent to close the week at 8,626.87.
The total turnover for the week stood at Tk 23.49 billion, which was 24.57 per cent higher than the previous week's total turnover of Tk 18.85 billion as the last week saw five trading sessions instead of previous week's four.
The daily turnover for the week averaged Tk 4.70 billion, registering a decline of 0.34 per cent over the previous week's Tk 4.71 billion.
The participants kept their focus concentrated on pharma, engineering and power - the sectors that accounted for 20 per cent, 18 per cent and 12 per cent respectively of the week's total turnover.
"The market edged higher last week as investors opted for fresh position taking in fundamentally sound stocks ahead of corporate declarations," said International Leasing Securities, a stockbroker, in its weekly analysis.
The country rating up-gradation by banking giant HSBC, with optimistic macro-economic forecast and recent positive remark by the finance minister also encouraged the investors to take position, said the stockbroker.
IDLC Investments, a merchant bank, said, "Market yielded a positive return last week, surviving the tax incentive seekers sale pressure".
The merchant bank noted that though sentiment was subdued in the beginning of the week from liquidation pressure of the tax motivated holdings, market absorbed the supply and sparked enthusiasm based on notable positive developments.
"As the FY 2014-15 has ended, investors started developing expectations for corporate declarations, due in coming weeks," said the merchant bank.
Turnaround in economy is expected by the investors in the mid-term, as political chaos rested and interest rate lowered, the merchant bank added.
"Dhaka stocks delivered muted returns last week as mixed economic data and selling spree continued to weigh on sentiment," said LankaBangla Securities, a stockbroker, in its weekly analysis.
The pullback continued in first two trading sessions as investors went for profit booking on stocks which gave short rallies in previous week, it said.
However, market retraced the upward move backed by strong buying interest in multinational and consumer stocks, said the stockbroker.
The gainers took a marginal lead over the losers as out of 324 issues traded, 166 advanced, 132 declined and 26 remained unchanged on the DSE trading floor.
The market capitalisation of the DSE went up by 0.82 per cent as it was Tk 3,239.49 billion on the opening day of the week and it stood at Tk 3,265.91 billion on closing day of the week.
One listed company -- Fareast Islami Life Insurance-- recommended 35 per cent cash and 10 per cent stock dividend last week for the year ended December 31, 2014.
United Airways was the week's top turnover leader with shares worth above Tk 1.01 billion changing hands during the week followed by ACI, Olympic Accessories, Beximco and Grameenphone.
Monno Ceramic was the week's best performer, posting a rise of 25.40 per cent while Uttara Finance was the week's worst loser, plunging by 13.66 per cent.
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