Turnover surges 40pc on premier bourse

Babul Barman | Published: January 09, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

Stocks witnessed marginal gain on the first week of New Year that ended Thursday with significant improvement in turnover as investors were active both sides of the trading fence.
Analysts said the positive expectation regarding market sentiment might have encouraged the sideline investors to inject fresh funds in the market, keeping the market turnover buoyant.
The week featured five trading sessions as usual. Of them, first two sessions fell marginally, next two closed higher with significant rise in turnover, while last one edged lower.
"The positive expectation regarding the macro-economic as well as capital market prospect, supported by eased political tension and rebounded export earnings, stocks turned around form middle of the week," said International Leasing Securities, a stockbroker," said International Leasing Securities, a stockbroker, in its weekly analysis.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 46.44 points or 1.0 per cent to settle the week at 4,676.08.
The two other indices also closed in green. The DS30 index, comprising blue chips, advanced 20.70 points or 1.18 per cent to finish at 1,771.29. The DSE Shariah Index rose 19.78 points or 1.79 per cent to close at 1,126.90.
The port city bourse Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - advancing 113.19 points or 1.32 per cent to end at 8,685.31.
During the week, market participation remained quite encouraging with the total turnover for the week stood at Tk 27.13 billion, which was Tk 19.38 billion in the week before.
The daily turnover averaged Tk 5.42 billion, which was 40 per cent higher than the previous week's average of Tk 3.87 billion.
Engineering came out to be the turnover leader followed by fuel and power and pharmaceuticals, capturing 21 per cent, 19 per cent and 14 per cent respectively of the week's total turnover.
IDLC Investments, a merchant bank, said "The market started the maiden week of the year in a negative tone, from which it strongly turned around in the later part of the week, riding on some positive macro-economic developments and New Year enthusiasm".
The merchant bank noted that investors enlightened their investment outlook, getting hope from news like -- overall export growth of 6.4 per cent year-on-year in 2015, 2.5 per cent year-on-year growth in remittance during last December.
Meanwhile, Bangladesh experienced a massive growth of 16.8 per cent in export to one of the major markets USA during July-November 2015, the merchant bank said.
In the meantime, global markets passed a shaky maiden week of 2016, as Chinese market fueled fear, by posting two days trading halts due to steep decline, said the merchant bank.
Lankabangla Securities, a stockbroker, "Despite the index crossed its resistance at 4,660-mark, upward trend of the market slowed down in the last trading sessions of the week".
"The market registered 1.0 per cent gain on the first week of 2016 with lower volatility, which can be a good sign for the investors as the index growth has beaten the risk level," said Royal Capital,Â stockbroker, in an analysis.
Investors are now in buy mood with some future expectations. Return to risk and sharpe metrics tracked with better market performance per unit of risk level, said the stockbroker.
Top gainers and losers of the week mostly consist of small-cap companies. Among the large-cap shares, United Power and Titas Gas posted return of 15 per cent and 5.7 per cent respectively. However, BATBC lost 4.3 per cent of its market capitalization.
The gainers took a strong lead over the losers as out of 325 issues traded, 188 closed higher, 114 lower and 23 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE edged up by 0.76 per cent as it was Tk 3,159.75 billion on the opening day of the week and it stood at Tk 3,183.79 billion on closing day of the week.
United Power Generation and Distribution Company dominated the week's turnover chart with shares worth Tk 1.22 billion changing hands during the week followed by Beximco Tk 1.20 billion, Beximco Pharma Tk 993 million, Emerald Oil Tk 797 million and IFAD Autos Tk 711 million.
Miracle Industries was the week's best performer, posting a rise of 30.59 per cent while Western Marine Shipyard was the week's worst loser, plunging by 12.68 per cent.
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