The jute sector emerged as the best performer on the Dhaka Stock Exchange in 2023, boasting an 11 per cent surge in its market value, while the travel and leisure sector became the worst performer, enduring a sharp decline of 25 per cent.
Of the 20 sectors on the stock market, 12 experienced price appreciations up to 11 per cent, and five underwent price correction up to 25 per cent, while three remained unchanged, according to EBL Securities.
The year 2023 was another gloomy year for the stock investors as participation of investors remained lacklustre owing to the imposition of 'floor price' restrictions.
Throughout the year, the blue-chip companies remained almost stuck at the floor price while low-performing and junk stocks dominated the market, driven largely by speculations.
The small-cap jute sector posted the highest gain of 11 per cent during a challenging period when the imposition of floor prices had a dampening effect on overall market sentiment.
The market has been in the doldrums throughout the year due to the deterioration of macroeconomic indicators, dwindling foreign exchange reserves and political uncertainty.
However, shares of small-cap companies defied the market trend.
The jute sector, comprising three small-cap firms, posted the highest annual gain, led by Sonali Aansh Industries which soared 23 per cent during the year. On the contrary, two other companies of this sector -- Jute Spinners and Northern Jute Manufacturing Company -- saw price correction.
Sonali Aansh's stock closed at Tk 572.10 on Thursday, up from Tk 465.20 a year earlier.
The stock price of Jute Spinners shed 9.7 per cent to close at Tk 298.20 on Thursday, the last trading day of the year, while Northern Jute Manufacturing ended at Tk 194.10, losing 18 per cent.
Small-cap stocks also dominated the gainers' table, with Khan Brother PP Woven Bag Industries being the top gainer with a 676 per cent surge, followed by Trust Islami Life Insurance (451 per cent), Khulna Printing (236 per cent), RN Spinning Mills (161 per cent) and Fine Food (124 per cent).
On the other hand, the travel and leisure sector suffered the biggest 25 per cent decline in market capitalisation this year, led by sector-heavyweight Sea Pearl Beach Resorts.
Sea Pearl Beach Resorts alone saw a decline of 46 per cent, emerging as the worst performer as a single-issue during the year.
Sea Pearl's stock opened the year at Tk 187.70 and closed at Tk 99.70, shedding more than 46 per cent during the year.
The travel and leisure sector was followed by IT sector and the paper & printing sector, losing 3 per cent each during the year. The ceramic and pharmaceuticals sectors managed to gain 1 per cent each.
According to the EBL Securities, a total of 114 issues advanced in 2023, while 130 stocks declined and 148 others remained unchanged.
Among the sectors, food, general insurance, pharmaceuticals, life insurance and IT together accounted for half of the annual turnover of DSE.
And the most-traded stocks of the year include Sea Pearl Beach Resort, Bangladesh Shipping Corporation, Genex Infosys, Gemini Sea Food, Rupali Life, Eastern Housing, Intraco, Orion Infusion and Aamra Network.
The market can be expected to bounce back and overall market turnover can be expected to significantly improve as funds unlocked will become available for reinvestment in 2024, said the EBL analysis.
Companies with sound fundamentals from fast-moving consumer goods, pharmaceuticals & chemicals, banking and insurance are expected to stand out in 2024 and companies from engineering, construction and textile may report earnings recovery, it said.
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"Companies heavily leveraged and reliant on imported raw materials may encounter challenges sustaining their profitability margins and earnings."
Overall, 2024 is anticipated to usher in a reprieve for investors, marking a positive turn after the challenges faced in 2023, said the EBL analysis.