Stocks stay upbeat for second week

Stocks stayed upbeat for the two consecutive weeks that ended Thursday with high turnover value as investors took position on large-cap stocks amid optimism.
Analysts said stocks maintained the upward momentum as buying interest spurred the sector specific large-cap issues, especially from telecommunication, power, engineering, pharma, NBFI and food and allied sectors.
"The opportunity-seeker investors showed their buying interest riding on the hopes of revival of stocks prices," said an analyst at a leading brokerage firm.
The securities regulator's recent move of allowing share transactions from investors' accounts for another six months, also created optimism among the investors, he said.
The accounts are burdened with negative equities.
"The spontaneous participation backed by hopes and optimism attracted the sideline investors to inject fresh fund on stocks, taking the market turnover hike," he added.
The week witnessed five trading sessions as usual. Of them, four sessions closed higher while one saw mild correction.
Week-on-week, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 78.20 points or 1.42 per cent to settle the week at 5,590.67.
"The key index gained around over 78 points with increased turnover value showing increased investors' confidence to the market," said LankaBangla Securities, a stockbroker, in its weekly market analysis.
The stockbroker noted that four out of five trading day of the week experienced positive movement.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 25.32 points or 1.26 per cent to finish at 2,027.68. The DSE Shariah Index rose 21.22 points or 1.65 per cent to close at 1,306.15.
The total turnover for the week stood at Tk 53.50 billion on the DSE which was Tk 45.12 billion in the week before.
The daily turnover averaged at Tk 10.70 billion, registering an increase of 45 per cent over the previous week's average of Tk 7.37 billion.
EBL Securities, a stockbroker, said, "The market witnessed both selling spree and position taking on sector specific issues, resembled through higher market turnover".
The pharmaceuticals sector led the turnover chart, capturing 16 per cent of the week's total turnover value, closely followed by engineering 15 per cent and textile 13 per cent.
International Leasing Securities, a stockbroker, said, "Stocks witnessed marginal gain as the cheerful investors remained active on some large-cap stocks".
"Some risk-averse investors bagged quick gain in last week where the opportunity-seeker investors rebalanced their portfolio ahead of year-end banks and financial institutions dividend declaration".
The stockbroker noted that spontaneous participation backed by optimism coupled with persistent upbeat market trend tempted the sideline investors inject fresh fund on stocks.
The port city bourse, Chittagong Stock Exchange (CSE), also closed higher for the second week with its Selective Categories Index, CSCX, advancing 159 points or 1.54 per cent to close at 10,489.
The gainers took a strong lead over the losers as out of 332 issues traded, 186 closed higher, 126 closed lower and 20 remained unchanged on the DSE trading floor.
The total market capitalisation of the DSE also rose 1.28 per cent last week as it was Tk 3,698 billion on the opening day of the week, while it stood at Tk 3,745 billion on closing day of the week.
LankaBangla Finance dominated the week's turnover chart for the second week in a row with 49.56 million shares of Tk 2.62 billion changing hands, followed by Baraka Power, Appollo Ispat Complex, IDLC Finance and Central Pharmaceuticals.
Malek Spinning Mills was the week's best performer, posting a 21.28 per cent gain, while SEML Lecture Equity Management Fund was the worst loser, slumping by 8.08 per cent.
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