Stocks extend gaining streak for 5th straight week

Stocks extended gaining streak for the fifth straight week that ended Thursday with turnover dropping slightly as optimistic investors remained on the buying spree.

The week featured all five trading sessions. Among them market closed higher three trading sessions while two sessions saw mild correction.

Week-on-week, the prime index of Dhaka Stock Exchange (DSE) -- DSEX went up by 50.51 points or 1.07 per cent to close the week at 4,753.17 points.

However, the other two indices went down marginally during the week. The blue chip index DS30 retraced 3.75 points or 0.23 per cent to close at 1,660.36 points while the Shariah compliant index DSES lost 2.07 points or 0.21 per cent to close the week at 974.27 points.

The Chittagong Stock Exchange (CSE) ended higher, with its Selective Categories Index -- CSCX gained 132.83 points or 1.43 per cent to close the week at 9,366.97 points.

The total turnover for the week stood at Tk 36.09 billion which was Tk 36.98 billion in the previous week.

The average daily turnover amounted to Tk 7.21 billion, registering 2.41 per cent decline over the previous week's average Tk 7.39 billion.

"Expectation based rollercoaster seemed to dominate the bourse over the week ahead of earning declarations," said IDLC Investments, in its weekly market analysis.

Sector wise in line with stock wise expectations, made the market scenario vibrant, which eventually assisted DSEX to add 50 points more from that of the last week, said the merchant bank.

"Overall market observed investors' positive response to earning expectations and investment outlook," said the merchant bank.

Fresh positioning and re-positioning in lucrative scrips, profit booking, natural correction and scrip wise movements were the common scenarios throughout the week, the merchant said.

The central bank published Monetary Policy Statement (MPS) in the week. Although much awaited and pondered upon, the statement could exert no visible influence over the market, due to lack of any significant change, the merchant bank said.

"As political activities cooled down and economic activities heated up, investors went into a buying mode, throughout the week," the merchant bank added.

"Market has posted around 10.5 per cent return in first three weeks of January. Investors seemed to be booking profit in this week," LankaBangla Securities.

Market primarily tends to remain bullish as money market is very highly liquid and loan demand from entrepreneurs is still very low, said the stock broker.

"Banking sector rose by 2.8 per cent in this week with 50 per cent rise in volume. General insurance sector rose by 2.5 per cent with 0.3 per cent fall in volume, the stock broker said.

"Banks and general insurance are December closing sectors. Investors are probably interested in these sectors for upcoming corporate declarations," the stock broker added.

"Stocks have registered modest gains and gracefully closed the week with decent turnover volume. Stocks' refraining from trading lower is clear evidence that investors are favoring all kinds of stocks," said Zenith Investments.

The gainers and lowers were almost same as out of 300 issues traded during the week, 140 advanced, 146 declined and 14 remained unchanged on DSE floor.

Three listed company - HR Textile, Makson Spinning and Prime Finance First Mutual Fund made corporate declaration in the week. HR Textile declared 15 per cent cash, Makson Spinning recommended 5 per cent bonus and Prime Finance First Mutual Fund declared 10 per cent cash dividend in the week.

The major sectors saw mixed performance in the week. Food & allied which now comprised 7.4 per cent of the total equity market cap following the inclusion of Olympic Industries.

The sector posted an impressive gain of 9.3 per cent, mainly owing to the large cap BATBC which gained 13.6 per cent during the week and featured in the top gainers chart. Banks and telecommunications also went up by 2.85 per cent and 0.38 per cent respectively. Pharmaceuticals and NBFIs ended in red with 1.86 per cent and 1.64 per cent loss respectively.

The market capitalisation of the DSE went up slightly by 0.56 per cent as it was Tk 2,859.60 billion at the opening day of the week and it stood at Tk 2,875.71 billion in closing day of the week.

Meghna Petroleum dominated the week's top turnover chart with shares worth Tk 1.33 billion changing hands during the week followed by Padma Oil, Square Pharma, UCBL and Olympic Industries.

Rahim Textile was the week's top gainer, posting a rise of 30.70 per cent while Bangas was the week's worst losers, slumping by 11.48 per cent.