FE Report
Stocks witnessed marginal gain last week with volatility, extending the gaining streak for the second straight week, as a section of investor booked quick profit in the middle of the week.
The week featured five trading sessions as usual. Of them, three sessions closed higher while two edged lower on profit booking sale pressure.
"The market passed a volatile week with increased sell pressure compared to the previous week as investors prompted to cash in on stocks while some remain in the sideline amid weak economic condition," said LankaBangla Securities, a stockbroker, in its weekly analysis.
The stockbroker noted that though stocks made a positive opening, quick correction in the middle of the week eroded some of the early gains, eventually ended marginally higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 42.12 points or 0.93 per cent to settle the week at 4,573.75.
The two other indices also edged higher. The DS30 index, comprising blue chips, gained 8.58 points or 0.50 per cent to finish at 1,729.64. The DSE Shariah Index rose 9.64 points or 0.88 per cent to end the week at 1,101.16.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher for the second consecutive week with its Selective Categories Index - CSCX - gaining 90.54 points or 1.07 per cent to end the week at 8,507.23.
The stockbroker noted that the broad index DSEX accelerated by 0.93 per cent last week with 0.18 per cent volatility. Market risk plunged by 78.11 per cent last week in compared to previous week better describes investors were in buy mode.
IDLC Investments, a merchant bank, said, "Optimistic news like US$ 250 million loan from ADB for capital market reform of Bangladesh and MoU signed between securities' regulators of India and Bangladesh instigated some positive signs in the market, pushing the broad index beyond 4,600-level".
However, due to weak economic data as demonstrated by 'Quantum Index of Industrial Production' and lack of firm investment ground, investors could not rely on that level and went for profit booking from the short trail of upsurge in the market, said the merchant bank.
Some sore domestic data points prompted the weakness. The Planning Commission has lowered the estimate of GDP set for the current fiscal year, citing the downward trend in the economy amid slow investment pace.
Report says that, GDP growth could fall to 6.8 per cent instead of 7.0 per cent if the slowing economic trend continues, said the merchant bank.
The market activities remained buoyant on the DSE and the total turnover for the week stood at Tk 21.96 billion which was Tk 17.90 billion in the week before.
The daily turnover averaged Tk 4.39 billion, which was 23 per cent higher than the previous week's average of Tk 3.58 billion.
Overall activities remained confined on engineering, pharma and fuel and power sectors, where they captured 18 per cent, 15 per cent, 14 per cent respectively of the week's total turnover.
The losers took a modest lead over the gainers as out of 325 traded issues, 158 closed lower, 139 ended higher and 28 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went up by 0.43 per cent as it was Tk 3,136.97 billion on the opening day of the week and it stood at Tk 3,150.59 billion on closing day of the week.
Meanwhile, five listed companies - Tallu Spinning, Mithun Knitting, Bangas, Eastern Cables and Bata Shoe-- recommended dividend during the week.
Tallu Spinning recommended 10 per cent stock, Mithun Knitting 17 per cent stock, Bangas 15 per cent stock, Eastern Cables 12 cash while Bata Shoe recommended 215 per cent interim cash dividend.
A new issue-Simtex Industries - made trading debut last week, but failed to attract the investors as its share gained 34 per cent on debut day.
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