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Weekly Market review

Stocks back in black after correction

Average daily turnover tops Tk 20b on DSE

BABUL BARMAN | September 24, 2022 00:00:00

Stocks bounced back in the outgoing week, returning to uptrend after a single-week correction, with investors mostly focused on selective large-cap issues.

Of the five trading days this week, three sessions posted gains while two others suffered losses amid high volatility, as many investors were busy rebalancing their portfolios.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settled the week 48.99 points or 0.75 per cent higher at 6,564, after losing 45 points in the previous week.

Market insiders said bargain hunters showed their interest in selective stocks throughout the week, taking the market turnover and index to a higher level.

The market movement was highly concentrated on some selective stocks while most of the shares struggled to draw buyers amid lack of clear market direction, said a merchant banker.

Five large-cap stocks such as Orion Pharma, Bangladesh Shipping Corporation, Beacon Pharma, Acme Laboratories and Orion Infusion jointly added 53 points to the DSEX, according to EBL Securities.

"Stocks managed to remain afloat as investors focused their attention on selective stocks with the anticipation of quick-gains while other stocks extended their correction mode," said the stockbrokers.

The key index crossed the 6,600-mark and the single-day turnover record Tk 28 billion-mark this week, but couldn't hold the upbeat momentum as investors took a cautious stance, influenced by the gloomy earnings forecast of the major companies due to the recent macroeconomic adversities, it said.

International Leasing Securities said the investors were active on both sides of the trading fence throughout the week ahead of June-closing corporate declarations.

The week's total turnover jumped to Tk 101 billion on the prime bourse this week as against Tk 70.82 billion in the week before.

The daily turnover averaged out at Tk 20.22 billion, up 43 per cent over the previous week's average of Tk 14.16 billion.

Two other indices of the DSE also ended higher this week. The DS30 Index, comprising blue-chip companies, rose 19.33 points to close at 2,365 and the DSES Index gained 7.17 points to finish at 1,437.

The pharmaceuticals sector dominated the turnover chart, grabbing 26.40 per cent of the week's total turnover, followed by miscellaneous (22.20 per cent) and engineering (9.40 per cent).

Major sectors showed mixed performances. The pharmaceuticals sector posted the highest gain of 2.20 per cent, followed by power 1.20 per cent and telecommunication 0.20 per cent.

On the other hand, the non-bank financial institutions witnessed the highest correction of 1.70 per cent, followed by food with 0.83 per cent, banking 0.80 per cent and engineering 0.46 per cent.

Losers took a strong lead over the gainers as out of 386 issues traded, 166 ended lower, 86 higher and 134 issues remained unchanged on the DSE floor.

Orion Pharma was the most-traded stock with shares of Tk 12.40 billion changing hands during the week, followed by Beximco, Bangladesh Shipping Corporation, JMI Hospital Requisite Manufacturing and LafargeHolcim.

BDCOM Online was the week's top gainer, soaring 52.62 per cent while Sonargoan Textiles was the week's worst loser, losing 18.92 per cent.

The Chittagong Stock Exchange (CSE) also bounced back, with the CSE All Share Price Index (CASPI) rising 204 points to settle at 19,345 and its Selective Categories Index (CSCX) soaring 124 points to close the week at 11,596.

Of the issues traded, 116 declined, 92 advanced and 129 issues remained unchanged on the CSE trading floor.

The port-city bourse traded 119.52 million shares and mutual fund units with turnover value of Tk 4.08 billion.

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