Stocks stayed positive for three consecutive weeks that ended on Thursday with rising turnover value as investors were mostly focused on buying spree driven by earnings declarations.
Analysts said the market finished higher primarily driven by corporate earnings declarations coupled with some company-specific positive news.
"Several companies' earnings disclosure attracted investors to take position, resulting in upbeat session for last three sessions of the week," said an analyst at a leading brokerage firm.
He noted that the investors were more focused on short term momentum-driven trading as almost all the companies disclosed their first quarter earnings in the meantime.
As a consequence, he said, the bourse was enjoying higher activities.
The week witnessed five trading sessions as usual. Of them, first two saw mild correction while last three sessions closed marginally higher.
Weak-on-week, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 21.41 points or 0.46 per cent to close the week at 4,698.54.
The two other indices also managed to close in positive territory. The DS30 index, comprising the blue-chips, saw a fractional gain of 0.30 point or 0.02 per cent to settle at 1,758.46. The DSE Shariah Index advanced 0.22 point or 0.22 per cent to close at 1,122.70.
The port city bourse Chittagong Stock Exchange (CSE) also finished higher with its Selective Categories Index CSCX advancing 52.76 points or 0.60 per cent to close at 8,805.74.
Trading activities remained high as market participants were active on both sides of the trading fence throughout the week. The total turnover for the week stood at Tk 30.91 billion which was Tk 29.47 billion in the week before.
The daily turnover averaged at Tk 6.18 billion, registering an increase of 4.87 per cent over the previous week's average of Tk 5.89 billion.
Replacing the fuel and power sector, engineering came to lead the week's sectoral turnover, capturing 20 per cent, followed by pharmaceuticals 13 per cent and fuel and power 12 per cent.
IDLC Investments, a merchant bank, said, "The market was driven by earnings disclosures as almost all the listed companies disclosed their first quarter earnings on the basis of which investors continued to re-balance portfolios."
"Short-term trading behavior and earning-driven momentum assisted to generate handsome activities," said the merchant bank.
"The flurry of earnings declarations that began in the week before continued last week as all the listed companies were required to disclose their earnings by November 15," said LankaBangla Securities, a stockbroker, in its weekly analysis.
The stockbroker noted that index slipped in first two trading days but recovered later in the week with three consecutive sessions ending in the green.
EBL Securities, a stockbroker, said, "The investors' sentiment regarding the market stayed positive and buoyancy sustained amidst quarterly corporate earnings declaration from listed companies as well as some company-specific positive news."
Another stockbroker Sheltech Brokerage said, "The market remained volatile throughout the week as earnings and dividend declarations of several stocks were announced and most of the stocks performed based on their earnings growth/de-growth."
The stockbroker noted that profit booking took place in the first two sessions, but the market fought back on the third session led by mid-cap stocks.
It noted that the market participants' also remained active on both sides of the trading fence throughout the week.
A total of 12 listed companies recommended dividend last week upto 105 per cent while one company declared no dividend for the year ended on June 30, 2016.
The losers and gainers were almost same as out of the 328 issues traded, 152 closed higher, 151 lower and 25 remained unchanged last week on the DSE trading floor.
The total market capitalisation of the DSE, however, inched down by 0.02 per cent last week as it was Tk 3,285.41 billion on the opening day of the week and it stood at Tk 3,284.88 billion on the closing day of the week.
Bangladesh Building Systems dominated the week's turnover chart with 26.89 million shares worth Tk 1.24 billion changing hands, followed by Shasha Denims Tk 987 million, Square Pharmaceuticals Tk 860 million, Quasem Drycells Tk 798 million and Golden Harvest Agro Industries Tk 767 million.
National Tubes was the week's best performer, posting a 20.13 per cent gain, while Eastern Lubricants was the worst loser, slumping by 34.18 per cent.
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Stocks stay positive for 3rd consecutive week
Babul Barman | Published: November 19, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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