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Weekly market review

Stocks keep rising, shaking off worries

BABUL BARMAN | September 03, 2022 00:00:00

Stocks extended the winning streak for a third straight week, as investors keep buying major sector stocks, shaking off fears about economic uncertainty.

All the five trading days this week ended higher, thanks to higher participation of general investors.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged 153.53 points or 2.42 per cent to settle the week at 6,508.61, the highest in nearly four months since May 12 this year.

The DSEX gained a total of 360 points in the past three consecutive weeks.

Market analysts said the market witnessed a substantial bull run as investors injected fresh funds amid growing confidence in the market.

The investors persisted in their buying binge ahead of the dividend season as they expect strong earnings for the companies whose financial year ended in June, said a merchant banker.

Besides, the fuel price cut, stability in the foreign exchange market, rising private sector credit growth, coupled with the 'floor price' restriction, kept the market afloat, he said.

Some recovery signs on the macroeconomic front instilled confidence among the investors that led them to inject fresh funds into equities, he said.

The market remained bullish amidst enthusiastic participation as the investors are more confident and buoyant to put fresh bets anticipating positive momentum ahead, said International Leasing Securities.

The buoyant investors showed their buying interest riding on the news that the private sector credit grew 14 per cent in July compared to the previous month and the government is trying to import oil from cheaper sources.

"All the measures taken have tempted the investors to remain active on the trading floor which pushed the turnover to increase significantly," said the stockbroker.

The week's total turnover jumped to Tk 95.15 billion on the prime bourse as against Tk 69.34 billion in the previous week.

The daily turnover averaged out at Tk 19.03 billion, up 37 per cent over the previous week's average of Tk 13.86 billion.

Two other indices of the DSE also ended higher this week. The DS30 Index, comprising blue-chip companies, rose 38.31 points to close at 2,305 and the DSES Index advanced 18.58 points to finish at 1,409.

The textile sector dominated the turnover chart, capturing 18 per cent of the week's total turnover, followed by pharmaceuticals (13 per cent) and engineering (12 per cent).

All sectors posted gains this week. Among the major sectors, general insurance saw the highest gain of 4.29 per cent, followed by banking (2.30 per cent), power (2.26 per cent), engineering (1.74 per cent), pharmaceuticals (1.02 per cent), food (0.74 per cent) and telecom (0.62 per cent).

Gainers took a strong lead over the losers, as out of 388 issues traded, 249 closed higher, 83 lower and 56 issues remained unchanged on the DSE floor.

Beximco became the week's most-traded stock with shares worth Tk 4.82 billion changing hands, followed by Orion Pharma (Tk 3.64 billion), Bangladesh Spinning Corporation (Tk 2.66 billion), Malek Spinning Mills (Tk 2.40 billion) and LafargeHolcim (Tk 2.39 billion).

Orion Infusion was the top gainer for the second straight week, soaring 41.05 per cent further this week while Union Capital was the week's worst loser, losing 14.81 per cent.

The Chittagong Stock Exchange (CSE) also extended the winning streak, with the CSE All Share Price Index (CASPI) soaring 514 points to settle at 19,156 and its Selective Categories Index (CSCX) rising 308 points to close the week at 11,480.

Of the issues traded, 240 advanced, 69 declined and 40 issues remained unchanged on the CSE trading floor.

The port-city bourse traded 106.54 million shares and mutual fund units with turnover value of Tk 2.79 billion.

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