Stocks post modest gain as investors net profit

Stocks posted a marginal gain last week that ended Thursday as investors booked profits and re-balanced portfolio, after previous week's slight fall.

Last week featured five trading sessions as usual. Of them, three sessions closed higher while two saw marginal correction amid profit taking sale.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), stayed above the 'psychological' threshold of 4,500 points for the last three weeks and ended at 4,577.99 points, gaining 30.94 points or 0.68 per cent.

The other two indices also ended in the positive territory. The DS30, comprising blue chips remained almost unchanged gaining 0.04 points to close at 1,726.48 points. The DSE Shariah Index advanced 4.42 points or 0.42 per cent to close at 1,066.12 points.

The port city bourse Chittagong Stock Exchange (CSE) also ended marginally higher with its Selective Categories Index - CSCX - went up by 98.97 points or 1.15 per cent to close at 8,658.38 points.

The week's total turnover improved to Tk 34.51 billion, which was 31.12 per cent higher over the previous week's total turnover of Tk 26.32 billion. Last week's total turnover was higher than the previous week's four sessions, because it involved five.

The daily turnover for the week averaged Tk 6.90 billion, registering an increase of 4.90 per cent over the previous week's average Tk 6.58 billion.

The investors' activity was mainly focused on pharmaceuticals, fuel and power, engineering and textile - the sectors that accounted for 16 per cent, 15 per cent, 14 per cent and 9.0 per cent respectively of the week's total turnover.

"Investors continued to accumulate large cap stocks with increased turnover. The strong turnover in the last few weeks shows investors' growing interest and consequent fresh money injection," said an analyst.

"Fresh fund injections, especially in large cap stocks aided further spike in market activities and kept market sentiment upbeat," merchant bank IDLC Investments said in an analysis.

Despite the negative start of the week, the bourse vibrated over investors' strong turnover and active investor participation. "Overall, market observed investors' favourable response to investment scenario," said the merchant bank.

"The benchmark index of DSE is still hovering around 4,600-level, which it is trying to break for the last couple of weeks," said brokerage LankaBangla Securities.

Some of the small cap stocks grabbed hefty return during the week as investors went for bottom hunting, said the stock broker.

Zenith Investments said: "The overall market condition still looks quite promising, as funds are cycling quickly in and out of stock market through profit taking and reinvestment".  

Losers outpaced gainers as out of 307 issues traded, 152 declined, 136 gained and 19 remained unchanged on DSE floor during the week.

A total of four listed companies - Bangladesh Submarine Cable Company, Pragati Life Insurance, GPH Ispat and Saiham Cotton Mills made - corporate declaration last week.

Among the sectors, IT sector registered a stunning 10.6 per cent return during the week with average turnover up by 165 per cent. Cement sector lost 4.67 per cent during the week as investors went for profit booking after two weeks of Bull Run.

Travel and leisure gained 6.87 per cent, service and real estate 6.45 per cent and food and allied 5.57 per cent respectively. The top losing sectors were paper and printing 18.66 per cent, telecommunication 3.27 per cent and mutual fund 2.31 per cent respectively.

The market capitalisation of the DSE went down slightly by 0.02 per cent as it was Tk 3,031.53 billion on the opening day of the week and it stood at Tk 3,030.89 billion on closing day of the week.

Beximco dominated the week's top turnover chart with shares worth Tk 2.48 billion changing hands followed by MJL Bangladesh, BSRM Steels, Beximco Pharma and GP.

Agni System was the week's top gainer, posting a rise of 38.61 per cent while Pragati Life Insurance was the week worst loser, plunging by 26.69 per cent following it's 'no' dividend declaration and placed to the 'Z' category.

A new issue - Far East Knitting & Dyeing Industries made debut closing session of last week. Each share of the company traded between Tk 48.5 and Tk 39 on the prime bourse before closing at Tk 45.4, gaining 68.14 per cent.