DSE sees expectations-driven optimism

FE Report

After sixth consecutive bullish sessions, the market ended flat Tuesday with turnover hitting another record with eight months high as investors acted cautiously by realizing profit.

The General Index of the Dhaka Stock Exchange (DGEN) ended at 4,222.94 points, gaining only 6.35 points or 0.15 per cent amid volatile trading throughout the session.

The DSEX, however, went down slightly by 0.48 points or 0.01 per cent to close at 3,974.48. The blue chip index DS30 advanced 2.81 points or 0.19 per cent to close at 1,465.10 points.

The total turnover at DSE hit another record with eight months high value of Tk 6.11 billion which was 11.8 per cent higher than previous session's 4-month high value. It was also highest turnover since October 15, last year when it was recorded Tk 6.91 billion.

"The session can be best described as a balance between expectations-driven optimism and cautious profit taking," commented IDLC Investments, in its regular market analysis.

"Market sentiment continued to stay upbeat, keeping upcoming budget for FY 2013-14 at the heart of interests. Since investors are already shuffling positions between scrips and sectors over anticipations, scrip-wise movements continued, incorporating investors' expectations," said the merchant bank.

As profit taking and fresh positioning put opposite forces on market direction throughout the session, indices rocked up and down. Eventually, amid flourished participation, DGEN and DSEX landed flat, the merchant bank added.

"Market started with the sign of bullish lately pulled down by the sell pressure from the investors with profit booking motive," stated LankaBangla Securities.

DGEN has increased by approximately 17 per cent during the last one month; there was one secondary trend correction of around 5.0 per cent within this period. Turnover crossed Tk 6.0 billion marks for the first time after October 2012, the stock broker said.

"Going forward market is likely to see escalated volume as the investors seek to rebalance their portfolio," the stock broker added.

"With the decent rate of volume growth the market seems to be consolidating at this 4,200 level and with increasing investment and bargain hunting activities, the recently induced sense of optimism may extend in the upcoming sessions," observed Zenith Investments.

Out of 286 issues traded, 108 advanced, 159 declined and 19 remained unchanged in the primer bourse.

Some correction was observed in the major sectors --- NBFIs lost 1.55 per cent, telecommunications 0.42 per cent and banks 0.15 per cent while fuel and power and pharmaceuticals ended positive with 1.49 per cent and 0.18 per cent gains respectively.

A total of 0.155 million trades were executed in the day's trading with 160.67 million securities of trading volume. The market capitalization on the DSE stood at Tk 2,440.70 billion against Tk 2,436.58 billion in the previous session.

United Airways was the day's most traded stock with shares worth Tk 432.40 million changing hands. Unique Hotel and Resorts, Active Fine Chemicals, Summit Purbanchol Power Company and Square Pharma were the day's next popular stocks.

Pharma Aid was the day's highest gainer, posting a rise of 9.95 per cent while Second ICB Mutual Fund was the day's worst loser, slumping by 7.09 per cent.

The Chittagong Stock Exchange (CSE) also closed flat with the Selective Categories Index lost slightly by 5.25 points to close at 7,837.17 points.

Losers beat gainers 126 to 66, with 12 issues remaining unchanged on the port city bourse that traded 16.81 million shares and mutual fund units, turnover value of Tk 543.55 million
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