The benchmark index of the Dhaka Stock Exchange - DSEX - managed to stay
positive last week despite bleak investment outlook and political
turmoil across the country.
The presence of investors was thin on the trading floor throughout the week because of the blockade enforced by BNP-led 18-party alliance and investors remained reluctant to make fresh investments over political turbulence.
The week witnessed five trading sessions as usual and the market went down in three sessions while two sessions managed to close positive.
Week-on-week, the DSEX went up marginally by 46.67 points or 1.10 per cent to close the week at 4,277.39 points.
However, the DS30 index, including blue chip stocks, went down by 5.86 points or 0.39 per cent in the week and closed at 1,497.92 points.
The Chittagong Stock Exchange (CSE) also ended positive last week, with its Selective Categories Index gaining 90.01 points or 1.08 per cent to close the week at 8,372.66 points.
Despite positive performance of the broad index, fear of political instability put a drag on market turnover. The total market turnover for the week stood at Tk 21.43 billion against Tk 30.82 billion in the previous week.
The daily turnover averaged Tk 4.28 billion, registering a 30.47 per cent decline over the previous week's average of Tk 6.16 billion.
Although the market managed to close positive, elevated profit taking tendency and political uncertainty still led many investors to trade cautiously, said an analyst.
"Investors are continuing their 'wait-and-see' policy and waiting for a clear direction. Gloomy political outlook has been a major setback for the market in recent days," he said.
"Market is in a very capricious mood. It is lacking any direction as political uncertainties are still not taking any shape," said LankaBangla Securities, a leading stock broker.
"Continuous political uncertainties are hampering corporate earnings. Export activities are being hampered severely." On the other hand, domestic market is swelled with idle liquidity. Call money rate has come down to around 6.0 per cent.
"So market participants are in a continuous fix whether to take position or stay sidelined to observe where political situation of the country goes," said the stock broker.
"Bleak investment outlook provided a shaky start to the first week of December," IDLC Investments said in its weekly market analysis.
Nevertheless, the week was not dull; rather confusion spurred sharp volatility in the market, generating significant return from Micro Cap stocks, said the merchant bank.
"The political turmoil of the country will be in a mood that remains yet to be seen," observed Zenith Investments.
Until then the market strengthening its position for long term may seem like a distant dream which may overshadow investors' constructive optimism about the future of the market, said the Zenith analysis.
The gainers took a modest lead over the losers as out of 295 issues traded during the week, 176 advanced, 97 declined and 22 remained unchanged on the premier bourse.
The major sectors showed mixed performances. Banks gained 2.65 per cent, the most in the week. It is followed by telecommunications with 1.58 per cent and pharmaceuticals with 0.54 per cent. Fuel & power and NBFIs lost 0.84 per cent and 0.36 per cent respectively.
The market capitalisation of the DSE went up by 0.90 per cent as it was Tk 2,635.13 billion on the opening day and it stood at Tk 2,658.77 billion on the closing day of the week.
A total of two listed companies -- Sonali Ansh and Paramount Textile -- made corporate declaration during the week. Sonali Ansh recommended 10 per cent cash while Paramount Textile declared 12 per cent stock dividend.
Delta Life Insurance was the week's top turnover leader with shares worth Tk 2.03 billion changing hands followed by Paramount Textile, Generation Next Fashion, RN Spinning and Bangladesh Building Systems.
Rahima Food was the week's top gainer, posting a rise of 39.18 per cent while Meghna Petroleum was the week's worst loser, slumping by 20.26 per cent.
The presence of investors was thin on the trading floor throughout the week because of the blockade enforced by BNP-led 18-party alliance and investors remained reluctant to make fresh investments over political turbulence.
The week witnessed five trading sessions as usual and the market went down in three sessions while two sessions managed to close positive.
Week-on-week, the DSEX went up marginally by 46.67 points or 1.10 per cent to close the week at 4,277.39 points.
However, the DS30 index, including blue chip stocks, went down by 5.86 points or 0.39 per cent in the week and closed at 1,497.92 points.
The Chittagong Stock Exchange (CSE) also ended positive last week, with its Selective Categories Index gaining 90.01 points or 1.08 per cent to close the week at 8,372.66 points.
Despite positive performance of the broad index, fear of political instability put a drag on market turnover. The total market turnover for the week stood at Tk 21.43 billion against Tk 30.82 billion in the previous week.
The daily turnover averaged Tk 4.28 billion, registering a 30.47 per cent decline over the previous week's average of Tk 6.16 billion.
Although the market managed to close positive, elevated profit taking tendency and political uncertainty still led many investors to trade cautiously, said an analyst.
"Investors are continuing their 'wait-and-see' policy and waiting for a clear direction. Gloomy political outlook has been a major setback for the market in recent days," he said.
"Market is in a very capricious mood. It is lacking any direction as political uncertainties are still not taking any shape," said LankaBangla Securities, a leading stock broker.
"Continuous political uncertainties are hampering corporate earnings. Export activities are being hampered severely." On the other hand, domestic market is swelled with idle liquidity. Call money rate has come down to around 6.0 per cent.
"So market participants are in a continuous fix whether to take position or stay sidelined to observe where political situation of the country goes," said the stock broker.
"Bleak investment outlook provided a shaky start to the first week of December," IDLC Investments said in its weekly market analysis.
Nevertheless, the week was not dull; rather confusion spurred sharp volatility in the market, generating significant return from Micro Cap stocks, said the merchant bank.
"The political turmoil of the country will be in a mood that remains yet to be seen," observed Zenith Investments.
Until then the market strengthening its position for long term may seem like a distant dream which may overshadow investors' constructive optimism about the future of the market, said the Zenith analysis.
The gainers took a modest lead over the losers as out of 295 issues traded during the week, 176 advanced, 97 declined and 22 remained unchanged on the premier bourse.
The major sectors showed mixed performances. Banks gained 2.65 per cent, the most in the week. It is followed by telecommunications with 1.58 per cent and pharmaceuticals with 0.54 per cent. Fuel & power and NBFIs lost 0.84 per cent and 0.36 per cent respectively.
The market capitalisation of the DSE went up by 0.90 per cent as it was Tk 2,635.13 billion on the opening day and it stood at Tk 2,658.77 billion on the closing day of the week.
A total of two listed companies -- Sonali Ansh and Paramount Textile -- made corporate declaration during the week. Sonali Ansh recommended 10 per cent cash while Paramount Textile declared 12 per cent stock dividend.
Delta Life Insurance was the week's top turnover leader with shares worth Tk 2.03 billion changing hands followed by Paramount Textile, Generation Next Fashion, RN Spinning and Bangladesh Building Systems.
Rahima Food was the week's top gainer, posting a rise of 39.18 per cent while Meghna Petroleum was the week's worst loser, slumping by 20.26 per cent.
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