Stocks return to green on buying binge

Babul Barman | Published: August 06, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

Stocks finished higher last week that ended Thursday, after witnessing mild correction in the previous week, as enthusiastic investors were on buying spree with large-cap stocks.
Analysts said the market closed higher as few large-cap stocks showed steep moves, while sector-specific stocks saw buying interest with solid earning declarations.
"The bargain hunters took position on some large-cap issues amid optimism as most of the listed companies' respective quarterly declarations entered the market," said an analyst at a leading brokerage firm.
Among the large-cap stocks, Lafarge Surma Cement jumped 7.60 per cent, followed by Titas Gas with 7.0 per cent, MJL Bangladesh 4.20 per cent and Square Pharmaceuticals 1.70 per cent.
The week witnessed five trading sessions as usual. Of them, first session saw mild correction, while the market turned around next two sessions with moderate gains, and final session finished in flat green zone.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 39.31 points or 0.87 per cent to finish the week at 4,577.57 points.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 23.69 points or 1.34 per cent to settle at 1,795.20. The DSE Shariah Index also gained 11.85 points or 1.07 per cent to close at 1,123.04 points.
The port city bourse Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index, CSCX, advancing 66.01 points or 0.78 per cent to settle at 8,565.27.
The total turnover for the week stood at Tk 22.17 billion, which was Tk 19.63 billion in the week before, while block trade accounted for 7.70 per cent of the week's total turnover.
The daily turnover averaged Tk 4.43 billion, registering an increase of 13 per cent over the previous week's average of Tk 3.93 billion.
Overall activities remained confined on fuel and power, engineering and banking sectors, where they captured 17 per cent, 16 per cent and 15 per cent respectively of the week's total turnover.
City Bank Capital, a merchant bank, said, "The bullish sentiment was triggered by the positive movement of large cap stocks; especially pharma and cement stocks".
The City Bank Capital noted that sectors like fuel and power, engineering, pharma, bank, textile and miscellaneous hold the position as top contributors in turnover chart.
International Leasing Securities, a stockbroker, said, "Earlier corrections in the market tempted the bargain hunters into coming forward as some fundamental issues seemed lucratively-priced".
LankaBangla Securities, a stockbroker, said, "Stocks pointed to the modestly higher; despite opening session was in sluggish mood".
The stockbroker noted that large cap shares were the top turnover generator of the week, though top gainer board was dominated by low cap junk stocks.
"Buying interest spurred on the large-cap, while industry specific updates, kept some investors watchful about future market movement amid profit taking mood," said the stockbroker.
The gainers took a modest lead over the losers as out of 328 issues traded, 164 closed higher, 132 closed lower and 32 remained unchanged on the DSE trading floor last the week.
Five listed companies recommended dividends, while three companies did not recommend any dividend for their investors last week.
The market capitalisation of the DSE edged up by 0.33 per cent last week as it was Tk 3,222.45 billion on the opening day of the week and it rose to Tk 3,233.02 billion on closing day of the week.
MJL Bangladesh dominated the week's turnover chart with some 7.68 million shares worth Tk 817 million changing hands, followed by Titas Gas, Islami Bank, Square Pharmaceuticals and ACME Laboratories.
Renwick Jajneswar was the week's best performer for the third week in a row, posting a gain of 31.53 per cent, while Sunlife Insurance was the worst loser, slumping by 22.47 per cent following no dividend declaration.
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