Dhaka stocks continued bull-run for the second consecutive week last week and DGEN crossed 4,600-point mark after three-month with significantly improving turnover value as the investors went for a buying spree amid optimism.
Total turnover value stood at Tk 55.9 billion, which was 37.4 per cent higher than last week's Tk 40.7 billion, while average daily turnover stood at Tk 11.2 billion compared to previous week's Tk 8.1 billion.
Last week's daily average turnover value was almost three times higher than the daily average for this year, which was Tk 4.2 billion.
Market analysts said the market rallied strongly with record high turnover in the week as recent positive market trend boosted up the investors confidence and encouraged them to take fresh position.
"The market keeps soaring with higher turnover value as stable money market and positive macroeconomic variables and increased remittance inflow have lifted the investors' confidence and they went for a buying spree," said a merchant banker.
The week witnessed five trading sessions as usual. Among those, three sessions gained heavily while two sessions lost marginally.
Week-on-week, benchmark general index of the Dhaka Stock Exchange (DGEN), went up by 247.41 points or 5.58 per cent to closed at 4,678.92.
The broader All Shares Price Index (DSI) soared 214.90 points or 5.74 per cent to 3,960.76 points. The DSE-20 Index comprising blue chips gained 253.97 points or 7.50 per cent to close at 3,640.94 points.
"The market closed higher for the second consecutive week anticipating positive settlement of Padma Bridge funding issue by World Bank," commented LankaBangla Securities in its weekly market analysis.
"Moreover, apparent liquidity in the money market increased the participation of institutional investors, which eventually increased the market activities significantly during the whole week," it said.
Furthermore, economic indicators were relatively stable throughout the week and the market rallied mostly relying on banks, cements and mutual funds, it added.
Mr Yawer Sayeed, a fund manager, said the market is almost stable and turnover value is increasing gradually. It is a positive indication.
"The soaring turnover value indicates that the demand on the market was strong and investors were interested in the market," said Mr Sayeed, adding "If the positive trend continues, the market will be more stable in near future."
However, he said the DSE and the securities regulator should monitor the market movement closely as some low-profile companies' shares rise abnormally along with strong ones which is very harmful for the market.
A stock broker said: "Anticipation of positive market trend lured the investors to make fresh investment, while stable money market scenario and overall stable economic situation accelerated market participation."
The heavily weight banking sector, financial and mutual fund sectors rallied sharply leading to the index and turnover higher in the week, he added.
Most of the sectors saw hefty gain in the week. Banking sector was the highest gainer, registering a rise of 17.09 per cent, among the major sectors, while NBFIs gained 5.53 per cent. Telecommunications and pharmaceuticals sectors also gained more than 2.0 per cent each while fuel and power lost 3.50 per cent.
The highest gainer was the Mutual Fund. The sector gained 19.52 per cent in the week. All the companies in the top 10 gainer's list for the week belonged to the
Mutual Fund sector. Grameen One Mutual Fund witnessed the highest gain of 60.06 per cent in the week. Cement sector also gained more than 10 per cent.
Out of 281 issues traded, 203 advanced, 76 declined and two remained unchanged in the week.
The market capitalisation of the DSE increased 4.39 per cent in the week. It was Tk 2,475.67 billion on the opening day of the week and at the end of the week it stood at Tk 2,584.94 billion.
Three companies---Hakkani Pulp and Paper, Janata Insurance and Unique Hotel and Resorts made corporate declaration during the week.
Titas Gas continued to top the week's turnover chart with shares worth Tk 2.84 billion changed hands during the week, followed by United Airways, RN Spinning, BSCCL, Unique Hotel and Resorts, MI Cement, Saiham Cotton Mills, Keya Cosmetics, BSRM Steels and Beximco Limited.
Grameen One Mutual Fund was the week's highest gainer posting a rise of 60.06 per cent, followed by Prime Finance First MF, Grameen Two MF, PHP First MF, DBH First MF, IFIL Islamic MF, Phoenix Finance First MF, ICB AMCL Third NRB MF, First Janata Bank MF, AIBL First Islamic MF.
The week's worst losers included GPH Ispat, Eastern Housing, Northern General Insurance, Navana CNG, Hakkani Pulp and Paper, GBB Power, RAK Ceramic, Delta Brac Housing, BD Thai Aluminium and Titas Gas.
source: The Financial Express
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