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Weekly stock review

Average turnover encouraging

FE Report | August 22, 2021 00:00:00


Dhaka bourse closed the week with a moderate rise in broad index as investors remained optimistic following the regulatory move to keep the liquidity flow unaffected.

At the end of the week, the DSEX, broad index of Dhaka Stock Exchange (DSE) settled at 6760.62 with a rise of 0.91 per cent or 61.23 points.

The shariah-based index DSES closed at 1461.34 points with a rise of 0.16 per cent or 2.30 points.

The DS30 index comprising blue chip securities declined 0.17 per cent or 4.03 points to close at 2423.55.

During the week, the premier bourse conducted trading for four sessions. According to market operators, daily average turnover of the week remained encouraging as the investors preferred to inject money into the stock market.

During the week, the DSE posted a daily average turnover of Tk 25.77 billion.

According to a market review of EBL Securities, the ceiling to provide margin loan at 1:0.8 ratio was extended up to 8,000 points which has opened the possibility of the index being able to reach new highs.

"However, several decisions in the money market sector such as BB directive to increase deposit rate around inflation rate and issuing 86.75 billion T-bill may help some funds from capital market to move to money market," said the EBL Securities.

It said the central bank's directive regarding submission of the banks' investment related reports on daily basis made investors cautious.

"As a result, last two sessions of the week have witnessed profit booking and more cautiousness from the investors."

Investors' buoyancy was observed mainly in banking sector. Apart from the bank, investors also took positions in general insurance, cement, fuel & power, textile and financial institution sectors. Many investors, however, reshuffled their portfolios during the week.

Of the major sectors which witnessed price appreciation, bank advanced 2.5 per cent, fuel & power 2.2 per cent, general insurance 6.5 per cent, textile 1.8 per cent.

Of the sectors which witnessed price correction, engineering declined 0.6 per cent, pharmaceuticals & chemicals 1.2 per cent and telecommunication 1.1 per cent.

Investors' participation was concentrated mostly on textile sector which grabbed 16.3 per cent of the market turnover followed by bank 12.5 per cent, financial institutions 12.2 per cent, pharmaceuticals & chemicals 9.0 per cent and miscellaneous 8.5 per cent.

South Bangla Agriculture & Commerce Bank was the number one gainer with a rise of 45.45 per cent to close at Tk 17.60 each.

Appollo Ispat Complex was the worst loser after declining 9.52 per cent to close at Tk 13.30 each.

At the end of the week, market capitalisation at DSE stood at above Tk 5.49 trillion with a rise of 0.34 per cent from the previous week.

According to a market review of International Leasing Securities, the broad index DSEX soared for the nine consecutive weeks as the buoyant investors kept their buying spree amid optimism.

"The cheerful investors exerted their enthusiasm riding on the securities regulator's move to boost up the supply of liquidity in the capital market," said the International Leasing Securities.

It also said the securities regulator allowed investors to avail credit facilities as per the existing margin loan ratio until the benchmark index of the Dhaka bourse exists below 8000 points.

"Investors are rushing towards the capital market because of lower returns on the money market, limited scope of investment in other instruments amid reopening of economic activities," said the market review of International Leasing Securities.

During the week, the indices of Chittagong Stock Exchange namely CSE30, CSCX and CASPI added 85.8 points, 115.1 points and 192.4 points respectively over previous week.

mufazzal.fegmail.com


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