Stocks stay upbeat for third straight week

Stocks extended their winning spell for the third week in a row that ended Thursday, as the optimistic investors continued their buying spree, especially on power, NBFI and engineering issues.
Market insiders said although indices advanced marginally, the investors were active on both sides of the trading fence throughout the week and strong buying and selling spree spurred the rise in turnover.
"The risk-averse investors bagged some quick-profit during the week while the bargain hunters were busy with rebalancing portfolio amid ongoing year-end dividend declaration of the banks and financial institutions," said an analyst at a leading brokerage firm.
Allowing the share transactions from investors' accounts, which were suffering from negative equity burden, for another six months to August 18, 2017, also created optimism among the investors, he said.
The week witnessed four trading sessions instead of five as the market remained closed Tuesday due to International Mother Language Day. Of them, two sessions closed higher while two faced mild correction.
Week-on-week, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 34.66 points or 0.62 per cent to settle the week at 5,625.33.
"DSEX added 260 points in the last three consecutive weeks. Out of this total gain, fuel and power, financial institution and engineering stocks contributed the most," said City Bank Capital Resources, in an analysis.
The two other indices also closed higher. The DS30 index, comprising blue chips, advanced 8.52 points or 0.42 per cent to finish at 2,036.20. The DSE Shariah Index rose 3.33 points or 0.25 per cent to close at 1,309.48.
The port city bourse, Chittagong Stock Exchange (CSE), also closed higher for the third straight week with its Selective Categories Index, CSCX, advancing 75.12 points or 0.72 per cent to close at 10,564.
The total turnover for the week stood at Tk 51.73 billion on the DSE which was Tk 53.50 billion in the week before as last week saw four trading session compared to previous week's five.
The daily turnover averaged at Tk 12.93 billion, registering an increase of 21 per cent over the previous week's average of Tk 10.70 billion.
"The bullish sentiment of market reflected on turnover activity as such the weekly average turnover saw a healthy improvement and stood at Tk 12.93 billion," said City Bank analysis.
LankaBangla Securities, a stockbroker, said, "The market maintained the upward trend amid increased turnover value showing increased investors' confidence to the market".
International Leasing Securities, a stockbroker, said, "The benchmark index of the prime bourse continued its upbeat vibe amid rising confidence from the investors".
The stockbroker noted that the risk-averse investors bagged some quick gain in the week where the bargain hunters rebalanced their portfolio ahead of the year-end dividend declaration of the banks and financial institutions.
"Some positive expectation of corporate declaration created optimism that tempted the sideline investors inject fresh fund," said the stockbroker.
Sheltech Brokerage, said, "The market extended the upward move led by fuel and power, non-bank financial institution and engineering stocks".
The total market capitalisation of the DSE also advanced 0.46 per cent last week as it was Tk 3,745 billion on the opening day of the week, while it stood at Tk 3,762 billion on closing day of the week.
Six listed companies - IPDC Finance, Social Islami Bank, IDLC Finance, Prime Insurance Company, Dutch Bangla Bank and RN Spinning Mills recommended dividend last week.
IPDC Finance recommended 20 per cent stock dividend, while Social Islami Bank recommended 20 per cent cash, IDLC Finance 30 per cent cash, Prime Insurance 13 per cent cash, Dutch-Bangla Bank 30 per cent cash and RN Spinning recommended 20 per cent stock dividend last week.
However, the losers took a modest lead over the gainers as out of 332 issues traded, 180 closed lower, 127 closed higher and 25 remained unchanged on the DSE trading floor.
Baraka Power dominated the week's turnover chart with 40.26 million shares of Tk 2.07 billion changing hands, followed by LankaBangla Finance, Beximco, IDLC Finance and Appollo Ispat Complex.
Salvo Chemicals was the week's highest gainer, posting 18.23 per cent gain, while RN Spinning Mills was the worst loser, slumping by 8.08 per cent following its earnings and dividend declarations.
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