Large cap stocks lift mkt for 3rd week straight

Babul Barman | Published: August 09, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Stocks extended gaining streak for the three weeks in a row with significant improvement in turnover, as investors snapped up large cap stocks.
Analysts said that the buying spree was spurred mainly by banks' deposit interest rate cut and lucrative pricing level in recent times.
Last week featured all five trading sessions as usual, the first trading week after Eid vacation. Of them, the first session closed in the red while the last four sessions ended positive.
Week-on-week, DSEX, the benchmark index of Dhaka Stock Exchange (DSE), went up by 59.04 points or 1.33 per cent to close at 24-session high level of 4,486.20 points.
The other two indices also closed higher. The DS30, comprising blue chips, went up by 26.19 points or 1.61 per cent to close at 1,652.71 points. The DSE Shariah Index surged 21.62 points or 2.15 per cent to close at 1,026.28 points.
Port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index - CSCX - went up by 111.28 points or 1.32 per cent to close at 8,492.42 points last week.
Investors' participation increased significantly with some fresh funds having injected. The turnover value climbed to Tk 27.20 billion, up from Tk 16.06 billion the week before.
The daily turnover for the week averaged Tk 5.44 billion, registering a 69.34 per cent increase over the previous week's average of Tk 3.21 billion.
"Market continued to rally on the first week of this month on the back of momentum developed by positive corporate earnings of most of the listed companies in April-June quarter," said LankaBangla Securities, in its weekly market analysis.
Investors' confidence seems to get back to the positive mode as the economy is showing signs of recovery after prolonged period of political turmoil, said the stock broker.
The highest monthly remittance flow of Tk 1.48 billion in July also boosted investors' sentiment, said the stock broker.
Some of the heavyweight stocks like GP, ACI, Square Pharma and BATBC led the market rally from the front, the stock broker added.
IDLC Investments, a merchant bank, said with the half yearly earning disclosures as well as the latest monetary policy statement (MPS), investors continued shuffling across sectors as well as issues.
"The investors continued re-balancing portfolio with more focus on selective stocks from fuel and power to telecommunication and cement," said the merchant bank.
"Lucrative prices coupled with better earnings and search for investment worthy spread in market dynamics spurred the investors most," the merchant bank added.
The market continued its positive streak as the investors are starting to believe the prolonged bearish spell may finally be over, said International Leasing Securities.
Price appreciation in most of the sectors along with significant price movement of several large cap stocks fuelled the market gain, said the International Leasing.
The gainers took a modest lead over the losers as out of 306 issues traded during the week 179 advanced, 113 declined and 14 remained unchanged on DSE floor.
Among the sectors, top gaining sectors were telecommunication 4.97 per cent, cement 4.28 per cent and pharmaceuticals 3.64 per cent respectively. Conversely, top losing sectors were miscellaneous 1.28 per cent, bank 1.26 per cent and mutual fund 0.62 per cent.
One listed company and eight mutual funds managed by Investment Corporation of Bangladesh (ICB) made corporate declaration last week. One company Delta Spinners declared 10 per cent cash dividend.
The market capitalisation of the DSE went up by 1.74 per cent as it was Tk 2,936.96 billion on the opening day of the week and it stood at Tk 2,988.18 billion on closing day of the week.
GP dominated the week's top turnover chart, with shares worth Tk 1.73 billion changing hands followed by Beximco, MJL BD, ACI and Lafarge Surma Cement.
Shahjibazar Power Company was the week's top gainer, posting a rise of 38.16 per cent, although the securities regulator formed a probe body to investigate its unusual price hike while Midas Financing was the week's worst loser, plunging by 24.06 per cent.