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Weekly market review

Stocks snap three-week losing streak

Average daily turnover jumps 53pc on DSE

FE REPORT | November 05, 2022 00:00:00

Stocks ended the outgoing week in the green, snapping a three-week losing streak as selling pressure faded following the settlement of the cheque encashment issue.

Considering the demand from stockbrokers, the securities regulator on Tuesday restored the scope of purchasing shares against investors' cheques before encashment.

Of the five trading days during this week, the first two days suffered losses while the last three sessions ended higher following the regulatory directive.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled the week at 6,410.67, registering a rise of 32.67 points, or 0.51 per cent, after losing 191 points in the past three weeks.

This week's total turnover clocked Tk 54.78 billion on the prime bourse as against Tk 35.84 billion the previous week. And the daily turnover averaged out at Tk 10.95 billion, up 53 per cent from the previous week's average of Tk 7.17 billion.

The market witnessed a significant inflow of funds as investors showed their buying appetite for selective stocks taking the advantage of fresh regulatory directive that allowed transactions before cheque encashment, said a merchant banker.

"Some investors were also busy with rebalancing their portfolios during the week as most listed firms published their quarterly financial statements," he said.

Investors were active on a handful of stocks as they perceived that they would be able to trade those at lucrative prices to make quick bucks, said EBL Securities.

However, investors remained cautious about the Bangladesh Securities and Exchange Commission's (BSEC) upcoming meeting with the IMF on capital market issues, which could have an impact on the market momentum next week, it said.

According to the International Leasing Securities, the investors showed interest in purchasing shares in the later part of the week, finding some stocks at lucrative prices following massive price erosion in recent times.

The securities regulator resolved a matter over encashment of cheques, which encouraged investors' participation, said the stockbroker.

However, most traded issues remained unchanged due to the 'floor price' restriction. Of 389 issues traded, 121 advanced, 46 declined and 222 issues remained unchanged on the DSE floor.

The pharmaceuticals sector dominated the turnover chart, grabbing 15.10 per cent of the week's total turnover, followed by miscellaneous (14.90 per cent) and IT sector (13.10 per cent).

Major sectors posted gains, with general insurance posting the highest gain of 4.10 per cent, followed by food (0.30 per cent), engineering (0.28 per cent), pharma (0.23 per cent) and power (0.20 per cent). Only the banking sector shed 0.20 per cent.

On the other hand, two other indices of the DSE ended lower. The DS30 Index, comprising blue-chip companies, lost 12.82 points to close at 2,253 and the DSES Index dropped 1.39 points to finish at 1,401.

Beximco was the most-traded stock with shares worth Tk 4.04 billion changing hands during the week, followed by Orion Pharma (Tk 2.58 billion), Navana Pharma (Tk 2.12 billion), Eastern Housing (Tk 2.11 billion ) and Genex Infosys (Tk 2.10 billion).

Newly listed Navana Pharma was the week's top gainer, skyrocketing by 114.48 per cent while Bangladesh Monospool Paper Manufacturing Company was the week's worst loser, plunging 13.09 per cent.

The Chittagong Stock Exchange (CSE) also bounced back, with the CSE All Share Price Index (CASPI) gaining 166 points to settle at 18,945 and its Selective Categories Index (CSCX) rising 99 points to close the week at 11,354.

Of the issues traded, 116 advanced, 38 declined and 168 issues remained unchanged on the CSE trading floor.

The port-city bourse traded 32.35 million shares and mutual fund units with turnover value of Tk 1.56 billion.

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