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Weekly market review

Stocks end almost flat amid volatility

Average daily turnover drops to Tk 7.91b

FE REPORT | May 13, 2023 00:00:00

Stocks returned to the green in the outgoing week after a single-week break but ended almost flat, as investors were active on both sides of the trading fence amid a lack of clear direction.

The market witnessed volatility due to cautious investors' profit-booking tendency in recently rallied stocks, while optimistic investors showed buying interest in selective stocks that managed to break out from the floor after a long time.

"As the fiscal year nears its end, some retail investors have started investing a portion of their savings into stocks to secure some tax rebate, which created enough stimulation for sector-specific stocks to get off the floor prices," said EBL Securities.

As a result, some 35 stocks took off from the floor prices during the week, while 150 issues were trading above the floor.

However, ongoing macroeconomic concerns prompted a section of investors to opt for profit booking in the recently rallied stocks, making the market volatile, said the stockbroker.

The week saw five trading days as usual with three sessions edging up while two others closed in the red. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up 3.27 points to settle the week at 6,272.43, after losing 4.88 points the week before.

The total turnover stood at Tk 39.57 billion, up from Tk 24.08 billion the week before, as this week saw five trading days compared to the previous week's three trading days. However, the average daily turnover dropped to Tk 7.91 billion, a 1.41 percent decrease from the previous week.

According to International Leasing Securities, the market witnessed see-saw movements throughout the week as investors were active on both sides of the trading fence.

The bargain hunters tried to take a position on textile, general insurance, engineering, and miscellaneous sectors' stocks, but the sales pressure in travel, paper, life insurance, and IT sectors battered the buyers' attempt during the week, said the stockbroker.

Most of the listed companies published their quarterly reports, and investors acted on those accordingly. And most of the blue-chip and large-cap stocks were in correction mode while small-cap stocks dominated the weekly gainers' list.

Apex Foods, for example, dominated the weekly gainers' chart, soaring 27.70 per cent, followed by Hwa Well Textile, Miracle Industries, and Simtex Industries.

The low-cap IT sector dominated the turnover chart, capturing 14 per cent of the week's total turnover, closely followed by the food and pharmaceuticals sector.

Major sectors witnessed mixed performance. General Insurance booked the highest gain of 1.23 per cent, followed by banking, engineering, power, and pharmaceuticals sectors. On the other hand, life insurance sector experienced the highest loss of 1.39 per cent, followed by food and telecoms.

Buyers dominated the sellers, as out of 391 issues traded, 118 closed higher, 47 lower, and 226 issues remained unchanged on the DSE trading floor during the week.

Bangladesh Shipping Corporation became the weekly turnover leader, with shares worth Tk 1.57 billion changing hands, followed by LafargeHolcim (Tk 1.47 billion), Intraco Refueling Station (Tk 1.43 billion), Eastern Housing (Tk 1.41 billion), and Sea Pearl Beach Resorts (Tk 1.20 billion).

The DSES Index, which represents Shariah-based companies, gained 4.63 points to close at 1,372. However, the DS30 Index, which consists of blue-chip companies, dropped 10.39 points to 2,194.

The Chittagong Stock Exchange (CSE) also edged up, with its All Share Price Index (CASPI) rising 9 points to settle at 18,490 and the Selective Categories Index (CSCX) gaining 4 points to close at 11,073.

The port city's bourse traded 29.10 million shares and mutual fund units with turnover value of Tk 703 million during the week.

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