MNCs, power issues attract investors on earnings expectation
Babul Barman
The market witnessed yet another positive week, extending the winning streak for the three weeks in a row that ended Tuesday as earning news enchanted investors.
The last week trading prematurely closed as the market went for six-day Eid holiday from Wednesday. During the three sessions' long-week, the market closed higher in all three trading sessions.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 56.22 points or 1.22 per cent to finish the week at 4,656.14.
The two other indices also ended higher. The DS30 index, comprising blue chips, rose 25.63 points or 1.43 per cent to settle at 1,820.88. The DSE Shariah Index gained 13.48 points or 1.19 per cent to end at 1,147.21.
The port city bourse Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - gained 86.85 points or 1.00 per cent to close the week at 8,713.72.
The upbeat created much attraction among the participants and gravitated additional funds from the sideline.
The total turnover for the week stood at Tk 15.68 billion, which was 33.21 per cent lower than the previous week's total Tk 23.48 billion as the last week saw only three trading sessions instead of previous week's five.
However, the daily turnover for the week averaged Tk 5.22 billion, registering an increase of 11.32 per cent over the previous week's averaged Tk 4.69 billion.
The investors mostly focused their attention on pharma, power and engineering - the sectors that accounted for 29 per cent, 15 per cent and 13 per cent respectively of the week's total turnover.
"The gaining momentum was powered by multiple factors, notably expectations on corporate declarations of the companies with accounting year ending in June, scrip wise stories, ease in political frontier and expected macro-economic turnaround," said IDLC Investments, in its weekly analysis.
International Leasing Securities, a stockbroker, said, "Stocks witnessed the extension of the last two week's winning streak amid optimism regarding half yearly earnings disclosures from stocks".
Meanwhile, announcement of favorable corporate declaration fueled the buying pressure during the week amid increased participation, said the stockbroker.
"The stock market remained buoyant last week with benchmark index gaining 56 points backing on multinational stocks and power stocks," said LankaBangla Securities, in its weekly analysis.
Almost all the major sectors enjoyed gain last week. The major gaining sectors were fuel and power 4.48 per cent, ceramic 3.21 per cent, mutual fund 2.39 per cent and bank gained 2.0 per cent.
The losing sectors were tannery 0.82 per cent, miscellaneous 0.25 per cent and IT sector 0.20 per cent.
The gainers took a lead over the losers as out of 325 issues traded, 188 advanced, 112 declined and 25 remained unchanged on the DSE trading floor.
The market capitalisation of the DSE went up by 1.16 per cent as it was Tk 3,265.91 billion on the opening day of the week and it stood at Tk 3,303.90 billion on closing day of the week.
One listed company - Meghna Life Insurance recommended 13 per cent cash and 20 per cent stock dividend last week for the year ended December 31, 2014.
ACI Limited was the week's top turnover leader with shares worth above Tk 1.82 billion changing hands during the week followed by GP, Lafarge Surma Cement, KPCL and Beximco Pharma, Beximco, ACI Formulations, IFAD Autos, Olympic Accessories and United Airways.
MBL First Mutual Fund was the week's best performer, posting a rise of 20 per cent while Golden Harvest Agro Industries was the week's worst loser, plunging by 12.11 per cent.
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